Ecclestone in Formula 1 bribe probe

[wnut]

Grikowski jail term ;8.5 years; for accepting bribes looks like it has massive implications for BCE:

http://www.grandprix.com/ns/ns24247.html

[JohnSSC]

Interesting link, wnut. I have wondered about BE's claim to victimhood here since this first came out. He has been a canny operator for years, then all of sudden finds himself compelled to pay a bribe when he has seemed to never ever pay more for something than it is worth.

Only time will tell. suspicions are one thing, proof can be very difficult to surface.

[Paradise City]

Hopefully this will sink that greedy flotation plan and encourage Eccelstone's retirement to the sunny climes of Bahrain. With a big dose of luck this could boomerang in the sports favour.

[JohnSSC]

The problem with that wish, Paradise, is that it is almost certain that the various agreements surrounding the various holdings are complex and difficult to unravel. I really doubt that BE will head quietly off to Bahrain to retire. I think that if anything does come of this the impact on the sport would be very negative. It is not like there is another entity that can step in and fill the void and it is also likely that anyone who tries to may find themselves needing a LOT of dosh to get the rights to do so.

[Paradise City]

Originally Posted by JohnSSC

The problem with that wish, Paradise, is that it is almost certain that the various agreements surrounding the various holdings are complex and difficult to unravel. I really doubt that BE will head quietly off to Bahrain to retire. I think that if anything does come of this the impact on the sport would be very negative. It is not like there is another entity that can step in and fill the void and it is also likely that anyone who tries to may find themselves needing a LOT of dosh to get the rights to do so.

I personally believe the sport is far too fat and could do with being radically cut down in size but even with that view I appreciate it could be damaged in various unforeseen ways. In any event Eccelstone is the world greatest escape artist so I expect him to come out of this at liberty and with his influence in tact. The man is a magician.

[Marbot]

Ecclestone knows too much stuff about too many influential people, to end up doing time for something that seems very difficult to prove in the first place.

There would be more chance of hell freezing over (should such a place actually exist).

[Casper]

If, and a big if, as I reckon he could drag it out until he fell off his perch, but if he was finally convicted or even getting close I reckon that his health would suddenly deteriorate and dementia and Alzheimers would set in to avoid any custodial sentence. That would be funny, BE in a wheel chair pretending to be a dribbling wreck, I would pay money to see that.

[nicanary]

Lots in the press today. BCE decides he won't be at the German GP .

Watch out for someone in the paddock in a red-and-white striped jumper, black bobble-hat and thick black glasses. Where's the wally?

[Casper]

One would have to assume that Bernie has matters still to be settled to the satisfaction of the German authorities and BE is not sure of the outcome.

[bjohnsonsmith]

He was conspicuous by his absence.

[GORDON STREETER]

"Teflon Bernie" will somehow get out of this and win costs !

[P38 in workshop]

According to some of the newspapers he has been rather preoccupied with other matters relating to his family.

[Paradise City]

All he needs to do is retreat to Bahrain, run his empire from there and just visit the non-European races.

[bjohnsonsmith]

Originally Posted by Paradise City

All he needs to do is retreat to Bahrain, run his empire from there and just visit the non-European races.

Doesn't he do that already; Monaco being the exception?

[BobHWS]

The Wall Street Journal has a pretty big story today about the bribery accusations against Bernie. Because the WSJ is a subscription Web site, it's hard to access the article directly, but if you search the words formula 1 scary turn (no quotes needed) in Google, you can get free access to the story. Here are a few highlights.

wsj.com
Formula 1 Hits a Scary Turn
German Prosecutors Near Decision on Bribery Charges Against Circuit's 'Supremo'
By DAVID CRAWFORD in Berlin and LAURA STEVENS in Frankfurt

...Asked whether the investigation of Mr. Ecclestone would prompt the auto maker to reconsider its Formula One involvement, Daimler CEO Dieter Zetsche told reporters this summer that the company requires its partners to abide by the auto maker's compliance policies. Daimler requires "steps to be taken if that's not the case," he said. "That applies to Formula One, too." The company is awaiting clarification and an "evaluation" by authorities in the Ecclestone investigation, a Daimler spokeswoman said.

...Prosecutors have said in court that they believe Mr. Ecclestone bribed Mr. Gribkowsky.

...Mr. Ecclestone's relationship with Mr. Gribkowsky dates to 2002, when German media mogul Leo Kirch, who owned a 75% stake in Formula One, filed for bankruptcy. Several banks ended up with large stakes in the company, which Mr. Ecclestone saw as a nuisance.

...the banks challenged Mr. Ecclestone for more power over Formula One in court and won. "Board meetings in 2004 and 2005 frequently disintegrated into shouting matches in which little got done," one person close to the matter said.

In late 2005 a London businessman introduced Mr. Ecclestone to Donald Mackenzie, a partner at private-equity firm CVC Capital Partners Ltd. Over lunch in London, Mr. Ecclestone vented his frustrations with the setup, describing it as "a mad house," one of the people familiar with the situation said.

...Prosecutors have alleged in court that Mr. Ecclestone approached Mr. Gribkowsky and bribed him to push through a deal with CVC Partners quickly, offering Mr. Gribkowsky $50 million in exchange for ignoring other potential options for Formula One. Mr. Ecclestone ultimately paid $44 million.

...As talks to close the sale proceeded, Mr. Ecclestone negotiated a consulting agreement with BayernLB to be paid $40 million in connection with the sale to CVC. The contract was arranged by Mr. Gribkowsky.

Prosecutors are investigating whether the payment was intended to provide Mr. Ecclestone with the money he needed to pay Mr. Gribkowsky.

...BayernLB in 2006 sold its stake to CVC for $839 million. The bank said recently that the price should have been higher but that Mr. Gribkowsky accepted less for the bank because of the payment he received personally from Mr. Ecclestone.

[JimW]

I like the reference in the article to him as a "fisherman's son".

Jim

[wnut]

Bernie admits that his time at the head of F1 will end if the German's pursue him on bribe charge.

http://www.crash.net/f1/news/187066/..._f1_reign.html

[bjohnsonsmith]

Originally Posted by wnut

Bernie admits that his time at the head of F1 will end if the German's pursue him on bribe charge.

http://www.crash.net/f1/news/187066/..._f1_reign.html

Seems odd to admit to something like that, Bernie usually keeps his cards close to his chest.

[broadrun96]

It does feel like Bernie has been warned by either CVC or German authorities or both and is prepping everyone for the possible outcome. Plus he has to retire at some time, and maybe he will use this as his excuse to head of to retirement, probably only popping up at Monaco to remind us how much he made of F1.

[Mr V]

Bernie has said that he isn't guilty, so it must be true

[broadrun96]

Or at least he has realized enough people might hate him enough to pressure the authorities to pursue him and the appearance of guilt might be too much for CVC to be willing to tolerate.

[ujoint]

bump:

A few years later...

F1 boss Ecclestone says he's not subject to U.S. laws in bribery case

Read more: http://www.autoweek.com/article/2013...#ixzz2KXfHBlmS

An extract from the article states:
"Ecclestone also claimed in the statement that he is not subject to U.S. law, on the basis that he has never resided in the U.S., owns no property here, leases no offices here, and employs nobody here except lawyers defending him in the lawsuit. He says he is a U.K. citizen living in London, and notes that he has visited the U.S. eight times since 2005, including trips to investigate the proposed Grand Prix in New Jersey, and a vacation with his family in Las Vegas. The affidavit also points out, “The various events underlying the allegations in the complaint did not take place in New York or the United States, but in Europe and the Middle East.”



Read more: http://www.autoweek.com/article/2013...#ixzz2KXgc1t9L

Hey Bernie, ever hear of Eric Holder? USA is in need of all the money it can get. It probably is not a good time for a visit to the US. Just saying.

[luke g28]

Purely from the above post I cant see why US law should apply

[chillibowl]

not a legal expert but why shouldnt it apply? im pretty sure i have the right to launch a Canadian lawsuit for example against a UK business even if its owners are not Canadian. again not an expert so maybe this is totally unrelated, but wasnt it a big story a while back that they trying to extradite some file sharing guy back to the US to face charges. or what about the wikileaks guy? not saying it would be easy but i think our governments have now for a long time been less inclined to protect its citizens from foreign prosecution. its a global world trying to regulate a global business.

probably would be easier to file suit in the UK (or the jurisdiction where the company is located) but maybe its about more than just money and the next time BE lands in the US there will be someone waiting to serve him.

[Flavio Galtieri]

Some facts are emerging at last.

http://www.pitpass.com/48382-CVC-was...more-to-buy-F1

The letter from CVC is fascinating in the context of the trial.....