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Portugal targets Scolari for fraud, laundering

By WTOP Staff

BARRY HATTON
Associated Press

LISBON, Portugal (AP) — Brazil coach Luiz Felipe Scolari is under criminal investigation in Portugal for suspected tax fraud and money laundering, according to U.S. court documents obtained Wednesday by The Associated Press.

Portuguese tax authorities suspect 7.4 million euros ($10.1 million) that was transferred from Portugal to a bank in Miami between 2003 and 2008, when Scolari was coach of Portugal’s national team, were local income that the Brazilian did not declare.

A U.S. district judge last week granted Portugal’s request for a series of Miami bank accounts to be examined, Florida court documents show. An assistant U.S. attorney was placed in charge of collecting the evidence.

Tax fraud and money laundering together carry a maximum penalty of 17 years in prison in Portugal, and the investigation is an unwelcome distraction for the Brazil coach as his country prepares to host the World Cup.

The 65-year-old Scolari denied any wrongdoing after the court documents were first reported Monday by OffshoreAlert, a Florida-based site specializing in fraud investigations.

“I have correctly filed all my tax returns. In all the countries where I’ve worked, I’ve always declared my income,” Scolari said in a statement sent to the AP in Sao Paulo late Tuesday. “If anything is wrong, it’s not my fault. I hope justice gets to the bottom of the facts.”

Officials at the Portuguese Football Federation, which employed Scolari as national team coach, did not immediately reply to a request for comment.

FIFA had no comment on the investigation. FIFA’s code of ethics can be applied to conduct “that damages the integrity and reputation of football and in particular to illegal, immoral and unethical behavior.”

Sanctions for breaching the code range from a warning to a ban from any football-related activity.

Portuguese investigators want to know who were the “real beneficiaries” of numerous payments made into the Miami accounts over the six-year period.

The money went to accounts held by Netherlands-based Flamboyant Sports C.V., London-based Chaterella Investors Limited and Taliston Financial Corp., a British Virgin Islands company, according to prosecutors. Those companies owned, at various times, non-exclusive rights to the use of Scolari’s name, image and voice, they say. Transfers were also made to Miami accounts in the name of Scolari himself and of his son Leonardo.

The investigators suspect Scolari used those companies and bank accounts to hide income from the Portuguese tax authorities.

Portuguese investigators sent their initial request for assistance to the U.S. Justice Department in Washington in late 2012. It was not clear why the request was submitted to a judge only last week. The judge endorsed the request last Thursday.

The Portuguese attorney general’s office acknowledged in an email to the AP that the Department for Criminal Investigation and Prosecution has opened an inquiry into Scolari and said investigators have also asked Britain, the Netherlands and Brazil for help. No further details were available.

In Portugal, ongoing investigations are subject to a judicial secrecy law which forbids the release of details of the case.

Scolari, who is Brazilian, led his country’s national team to the World Cup title in 2002. He will again coach the Brazilian team at this year’s World Cup.

He has also coached in Japan and the Middle East. He was coach of Premier League club Chelsea between 2008-09.

Scolari was Portugal’s most successful national team coach. He guided the Portuguese to the final of the 2004 European Championship and to the semifinals of the 2006 World Cup. Along the way, he gave Cristiano Ronaldo his national team debut and made him captain.

To help pay the salary of a World Cup-winning coach — and to prevent him from being poached by other clubs and countries which offered him contracts, including England — the Portuguese federation signed multimillion-dollar sponsorship deals, including with Nike and two Portuguese banks. Scolari, whose salary in Portugal was never made public, appeared in advertising campaigns.

Portugal’s government has set up special investigative teams and increased penalties in an effort to crack down on tax evasion. The country needed a 78 billion euro ($107 billion) bailout in 2011 after high debts pushed it to the brink of bankruptcy.

In neighboring Spain, where authorities have also targeted tax evaders, officials have brought tax fraud charges against Lionel Messi and his club, Barcelona.

___

AP Sports Writers Tales Azzoni in Sao Paulo and Graham Dunbar in Geneva, and Associated Press writers Alan Clendenning in Madrid, Spain, and Curt Anderson in Miami contributed to this report.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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