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Feds on Charges Against Soccer Officials; Texas Dam Overflows, Homes Evacuated; Rand Paul Wants GOP to Rebrand. Aired 10:30-11a ET

Aired May 27, 2015 - 10:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


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[10:30:48] CAROL COSTELLO, CNN ANCHOR: And good morning. I'm Carol Costello. Thank you so much for joining me.

Happening right now in Brooklyn, the FBI director James Comey and newly-appointed Attorney General Loretta Lynch holding a news conference. Soon one of them will be behind that podium to detail this investigation and charges into corruption and allegations against world soccer's governing body.

Earlier today the world of soccer was rocked as it learned twin raids on two continents targeted FIFA, the group that oversees the World Cup as well as every major soccer tournament around the world. We'll learn more about the charges in a moment because like you saw, they're not behind the podium quite yet.

But the charges kind of read like a Mafia transcript: money laundering, fraud and racketeering, bribes and kickbacks totaling more than $150 million.

Evan Perez is about to cover that news conference in Brooklyn. He's on the phone with me now. What do you expect to hear?

EVAN PEREZ, CNN CORRESPONDENT (via telephone): Well, Carol, the charges you just read are exactly what are behind what the Justice Department says was essentially a criminal enterprise for the last couple of decades.

FIFA is the world body that governs soccer; 200 of their representatives were gathering in Zurich for an election on Friday of Sepp Blatter, the longtime president. And this morning and several of these officials were woken up out of their sleep at their hotel -- their luxury hotel in Zurich to be arrested which Swiss police working with the FBI.

In all 14 people are indicted in these charges that are being announced very shortly here in Brooklyn. Seven people arrested in Zurich. We expect that there will be arrests made in Trinidad and other countries as well.

This is an investigation that's gone on for about four years. The FBI has been looking into these allegations that not only were some of the elections being fixed at FIFA but some of the selections for World Cups. If you remember five years ago the U.S. lost out to Qatar in its bid to host the 2022 World Cup. And so that's how this investigation has got started and now here we are today with these unusually incredible charges against a very large organization that runs soccer around the world.

COSTELLO: Evan, why is the U.S. spearheading this? I know soccer is important in the United States but it's much bigger in Europe and in other places around the globe.

PEREZ: Well, you know, that's a good question. We asked about this back in December when we first previewed that this investigation was heating up and the FBI was looking at bringing charges. The answer we got from officials is that it looks like soccer is not able to police itself. They tried to do an internal investigation and came up that there was nothing wrong there. And so it became the responsibility of prosecutors to try to fix some of these corruption problems that people have been talking about in FIFA for years and years.

Some of the alleged bribery took place inside the United States. Some of the officials live here in the United States. And, you know, U.S. networks are some of the biggest funders for the World Cup, the television rights. So that's one reason why the U.S. feels it has jurisdiction to bring these charges.

COSTELLO: All right. Evan Perez, let's see it's going to -- OK. This nice young lady is announcing that the press conference will start in just about five minutes and when it begins, of course, we'll get right back to Brooklyn.

In other news this morning, just minutes ago in Houston, a flash flood warning expired. For much of the warning, flood-weary residents cringed at the threat of seeing up more than three more inches of rain an overwhelming amount of rain for an area so saturated. While that amount has not materialized, there have been thunderstorms this morning in and around Houston.

And we have new details for you right now. We were talking about that breached dam southwest of Dallas. We showed you these images of this dam. Flood waters topping the structure which means the dam has been breached -- the real danger though was out of view. An official with the Army Corps of Engineers tells us that the structure may be weakened to the point of collapse by water penetrating the dam -- there you see it now. About 25 homes downstream have already been evacuated.

We'll keep you posted.

[10:35:01] Of course, one of the other hardest hit areas in Texas is Hays County. Three people have died there. Eleven are still missing. Hundreds of homes damaged as thousands flee to shelters.

Jennifer Gonzalez's home sits just outside of that county and as you can see, it's barely recognizable. You can see some of the walls are gone. The roof is frighteningly close to collapsing.

Jennifer joins me now on the phone. Hi -- Jennifer. JENNIFER GONZALEZ, HAYS COUNTY RESIDENT: Hello.

COSTELLO: You and your family were inside this home on Sunday and had to be rescued. Tell me what it was like to feel that rain coming down and the floodwaters rising.

GONZALEZ: Well, we got a knock on the door about 11:30 wanting us to evacuate. I have my dad who is disabled. We made sure that he was out in safety. I mean the water was just coming too fast and we got whatever we could. My neighbors also lost things. Several of our families there did lose a lot of their stuff.

We got seven or eight feet of water in our house. We lost everything. My dad as I said was is disabled. My daughter and her four-month-old baby were not home but also lost everything in the flood. Right now we're staying with family members.

COSTELLO: Were you rescued by boat? How did the rescue go down?

GONZELEZ: Actually the police -- we were actually able to get out but it was very fast. We just had to get whatever and just leave. We didn't have time to do anything. The water was coming down too fast.

COSTELLO: I just can't imagine -- I can't imagine, Jennifer, looking at my home like this. I just can't imagine how you're feeling right now.

GONZALEZ: Yes. It's very overwhelming but we have community help, you know. Our family and also several families that were also -- my next door neighbors, my cousins down the street also had water in their house and we had several families that were affected by the flood. It's just very overwhelming.

COSTELLO: Jennifer Gonzalez, thanks for sharing your story. We appreciate it.

Still to come in the NEWSROOM, more Republicans jumping into the race for the White House but who is standing out? You might be surprised next.

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[10:41:15] COSTELLO: All right. We want to check back at that news conference about to take place in Brooklyn. We're expecting the FBI director James Comey and the Attorney General Loretta Lynch to be behind the podium very soon. They're going to talk about this investigation into charges of corruption against soccer's governing body, FIFA.

You see Loretta Lynch approaching the podium now. Let's listen.

LORETTA LYNCH, U.S. ATTORNEY GENERAL: All right. Good morning, everyone. Thank you all for being here today.

Before we begin with today's announcement, I do have a brief comment to make on the situation regarding FISA. As attorney general I'm committed to ensuring that this nation protects the civil liberties of every American while also keeping our country safe and secure.

Unfortunately some of the vital and noncontroversial tools that we use to combat terrorism and crime are scheduled to shutdown on Sunday making this not an ordinary weekend. The House of Representatives has passed a bipartisan bill called the U.S.A. Freedom Act that would extend these tools while addressing important and valid concerns about other aspects of the government's ability to protect data.

But without action from the senate, we will experience a serious lapse in our ability to protect the American people. Today I join the President in urging the Senate to work through the current recess in order to make sure that we can continue to appropriately safeguard this country and protect its citizens.

Now, for today's announcement: I am honored to be joined today by director James Comey of the FBI, by acting U.S. Attorney Kelly Currie here in the eastern district of New York and chief of investigation Richard Webber of the IRS' Criminal Investigation Division.

We are here to announce the unsealing of charges and the arrest of individuals as part of our long running investigation into bribery and corruption in the world of organized soccer. Now, many of the individuals and organizations we will describe today were entrusted with keeping soccer open and accessible to all.

They held important responsibilities at every level from building soccer fields for children in developing countries to organizing the World Cup. They were expected to uphold the rules that keep soccer honest and to protect the integrity of the game. Instead they corrupted the business of worldwide soccer to serve their interests and to enrich themselves.

This Department of Justice is determined to end these practices, to root out corruption, and to bring wrongdoers to justice. The 14 defendants charged in the indictment we're unsealing today include high ranking officials of FIFA, the international organization responsible for regulating and promoting soccer; leaders of regional and other governing bodies under the FIFA umbrella; and sports marketing executives who according to the indictment paid millions of dollars in bribes and kickbacks to obtain lucrative media and marketing rights to international soccer tournaments.

The 47-count indictment against these individuals includes charges of racketeering, wire fraud, and money laundering conspiracies spanning two decades. FIFA and the regional bodies under its umbrella make money in part by selling commercial rights to their soccer tournaments to sports marketing companies often through multiyear contracts covering multiple editions of tournaments. Now the sports marketing companies in turn sell those rights downstream, that is, to other TV and broadcast networks to corporate sponsors and to other entities for significant sums of money. [10:45:02] Beginning in 1991, two generations of soccer officials

including the then presidents of two regional soccer confederations under FIFA, one being the Confederation of North Central America and Caribbean Association Football, known as CONCACAF which includes the U.S., and the South American Football Confederation or CONMEBOL which represents organized soccer in South America used their positions of trust within their respective organizations to solicit bribes from sports marketers in exchange for the commercial rights to their soccer tournaments. They did this over and over, year after year, tournament after tournament.

In just one example, in 2016, here in the United States, we are scheduled to host the centennial edition of the Copa America, the first time that tournament will be held in cities outside of South America. Our investigation revealed that what should have been an expression of international sportsmanship was used as a vehicle in this broader scheme to line executive pockets with bribes totaling $110 million. Nearly a third of the legitimate cost of the rights to the tournaments involved.

Now, the criminal activity that we've identified did not solely involve sports marketing. Around 2004, bidding began for the opportunity to host the 2010 World Cup, which was ultimately awarded to South Africa. The first time the tournament would be held on the African continent.

But even for this historic event FIFA executives and others corrupted the process by using bribes to influence the hosting decision. The indictment also alleges that corruption and bribery extended to the 2011 presidential FIFA election and to agreements regarding sponsorship of the Brazilian national soccer team by a major U.S. sportswear company.

In short, these individuals through these organizations engaged in bribery to decide who would televise games, where the games would be held and who would run the organization overseeing organized soccer worldwide -- one of the most popular sports around the globe. And while at least one FIFA executive served as CONCACAF president without pay, there was little altruism involved as he alone is alleged to have taken more than $10 million in bribes over a 19-year period and amassed a personal fortune from his ill-gotten games.

In many instances the defendants and their co-conspirators planned aspects of this long running scheme during meetings held here in the United States. They used the banking and the wire facilities in the U.S. To distribute their bribe payments and they planned to profit from their scheme in large part through promotional efforts directed at the growing U.S. market for soccer.

In addition to the indictment unsealed today, the charging instruments of four individuals and two corporate defendants who have already pleaded guilty to their involvement in racketeering activity and other criminal conduct.

Among these defendants are a U.S. sports marketing company, a Brazilian sports marketing executive, and a U.S. citizen who, in addition to being the former General Secretary of CONCACAF and a member of the FIFA executive committee, was a beneficiary of the 2010 World Cup bribery scheme.

COSTELLO: All right. We're going to step away from this news conference because as you can see the complaint against soccer's governing body is quite lengthy. That's Loretta Lynch the U.S. Attorney General outlining the charges.

We're going to have much more on this in the hours ahead on CNN. I have to take a break. I'll be back with more in the NEWSROOM.

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[10:52:24] COSTELLO: And then there were seven -- seven Republicans who want to be the next occupant of the White House, that is. The newest candidate -- Rick Santorum. The former Pennsylvania Senator expected to officially jump into the race later today. As you know, Rick Santorum has a lot of company and as the contenders try to find a way to stand out in a crowded field, at least one of them says it is time for the Republican Party to revamp. And I mean revamp.

Check out this passage from Rand Paul's new book. The book is called "Taking a Stand: Moving Beyond Partisan Politics to Unite America". This comes from chapter 16 and chapter 16 is called "Tree Hugger".

Paul writes quote, "The new GOP has a place for those who want to provide for a cleaner brighter future for our planet. In the new GOP it will be OK to watch Jon Stewart. In the new GOP it will be just as admirable to defend the Fourth Amendment, searches and seizures, as the Second Amendment. In the new GOP it will be cool to compost, shop at farmer markets. That's the GOP I hope to lead.

Let's talk about that. Ana Navarro is a Republican strategist and supporter of Jeb Bush and friend of Marco Rubio; Sabrina Schaeffer is executive director of "The Independent Women's Forum". Welcome to both of you.

SABRINA SCHAEFFER, "THE INDEPENDENT WOMEN'S FORUM": Thanks for having me.

COSTELLO: Thanks for being here.

ANA NAVARRO, REPUBLICAN STRATEGIST: Hey Carol.

COSTELLO: Sabrina, a Republican tree hugger. Is Rand Paul out of his mind or is he ahead of his time?

SHAFFEWR: I would say that he's maybe just right in step with time. I'm actually so excited about this political season because of the diversity of perspectives and ideas and different backgrounds and people that we have out there.

If you really look at who is jumping into the field right now, we have people of different ages, we have establishment, non- establishment, social conservatives, libertarian. We have people who are, you know, like Santorum today who are talking about raising the minimum wage and someone like George Pataki, he's talking about the environment as is Rand Paul.

We have just a range of different perspectives which I think will lead to a very healthy debate in the months moving forward.

COSTELLO: Yes. But Ana -- Rand Paul sounds like a Democrat.

NAVARRO: Why? Why are we -- you know, I hate labeling. I hate painting everything just black and white. I don't think Republicans should cede the environmental issue to Democrats. I think there are some tree-hugging Republicans. I'm not sure you can get me to compost any time soon but certainly there are a lot of Republicans who care enormously about the environment.

[10:54:58] I can tell you that John McCain is one of the leaders on that. When Jeb Bush was governor of Florida, he spent a lot of time and resources on things like saving the everglades. So it is not a Democrat or Republican issue.

COSTELLO: Yes, but Sabrina, other candidates aren't going quite as far. I mean they are saying some stuff but they are still appealing very strongly to conservatives.

SCHAEFFER: Sure. But I think what Rand Paul is getting at is this idea that very often progressives and the media like to portray conservatives and the Republican Party by extension as sort of one dimensional. When, in fact, we're a big country where a lot of different people, many Republicans live in cities. Others live in the country. Some are married. Some are unmarried. We're a diverse group of people and most of the common theme is that these are people who believe in limited government.

That doesn't mean that we can't have different preferences and taste and interest in where we want to go to dinner or what movies to watch. And I think that Rand Paul is very smart to sort of point out that we can have that kind of diversity and we should encourage that kind of diversity and that's only a good thing for the party and for conservatives.

COSTELLO: OK. So Ana -- to sum it all up on a scale of one to ten, where does Rand Paul rate in actually becoming president with this message to voters?

NAVARRO: I think -- it's not just about this message to voters. It's about his experience. It's about his foreign policy views. I mean you just don't take one angle when you are voting for president. Certainly most people don't.

Look, I think he appeals to a certain segment. I don't think he has broad appeal in the Republican Party. I think his foreign policy views put him out of step with a lot of us in the party. I think he does a lot to broaden the tent. He shows up in places that are uncomfortable for some Republicans to go to. I give him a lot of credit for that. Where do I rank him? I would say bottom five.

COSTELLO: All right. Sabrina Schaeffer, Ana Navarro -- thanks so much.

And thank you for joining me today. I'm Carol Costello.

"AT THIS HOUR" with Berman and Bolduan after a break.

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