Formula One Chief Bernie Ecclestone Settles Bribery Case for $100 Million
Formula One is a sport enjoyed by many. The sport regards
Formula One Chief Bernie Ecclestone as the indispensable genius of the game.
A judge in a Munich court, probably a Formula One fan, agreed to let Bernie
Ecclestone pay a $100 million penalty in return for resolving a criminal
case of bribery that could have sent him to jail for up to 10 years.
Western countries often criticize the
developing countries and their legal system, when someone commits a serious
crime - in this case corruption, bribery and breach of trust - and gets
away with a comparatively small fine. A German judge agreed to a deal
between the defense and prosecutors, when he formally ended the criminal
case without making a ruling on Ecclestone's guilt. The settlement has
brought harsh judicial criticism.
Obscene Deal
The Frankfurter Allgemeine Zeitung, one of Germany's most influential
newspapers, and Suddeutsche Zeitung, a powerful regional paper published
in Munich, said that the obscene 100 million $ fine was an example of
the commercialization of criminal proceedings. Sabine Leutheusser-Schnarrenberger,
Germany's former justice minister said the financial penalty had sent
a message that the wealthy can buy their freedom in criminal cases.
Ecclestone faced charges that he paid $44 million as bribe to a German
banker, who approved the $1.4 billion sale of the Formula One rights in
2006. The deal retained his lucrative position as the sport's overseer
and has enabled Ecclestone to amass a personal fortune of close to $5
billion.
Commercialization of criminal proceedings
Ecclestone acknowledged making the payment to the bank manager, who in
turn is serving an eight-and-a-half-year jail term for his role in the
deal. Incidentally it was the same judge that delivered a guilty verdict
on charges that the banker accepted a bribe from Ecclestone and defrauded
his employers in the state-owned Bayerische Landesbank.
The $100 million payment, one of the heaviest financial penalties on an
individual in the history of sports, reflected the extent of the fortune
Ecclestone has made from Formula One since he began taking control of
the sport in the 1970s.
Source: NY Times.
Settle a Case Out of Court (ADR)
Going to court is not always the best way to resolve a legal dispute because
it can be costly, time-consuming and very stressful. Other ways to solve
legal problems are called "alternative dispute resolution" or ADR. Common
types of ADR include mediation, arbitration, and neutral evaluation.
At the 8th Annual European GRC Summit:
| 10:30-10:55 |
When an IT Deal or a Contract Goes Sour
Steffen Pihlblad, Generalsekretær, The Danish Institute of Arbitration |
| 10:00-12:00 |
Bribery, Fraud and Corruption Workshop
Claus Andersen, LLM, Royds |
