09-29-04 -- International Boxing Federation -- Consent Order -- News Release

Judge Ends Federal Monitorship of International Boxing Federation; Corruption Reforms in Place

NEWARK - A federal judge determined today that the International Boxing Federation, the only major professional boxing sanctioning organization in the country, no longer requires court supervision, U.S. Attorney Christopher J. Christie announced.

This morning, Chief U.S. District Judge John W. Bissell entered a Consent Order that ends a Monitorship he imposed in January 2000. The order also imposes important restrictions on the IBF and its officials.

"It has taken much effort to reach this point, and I am optimistic that the IBF will thrive as an organization that conducts its affairs with fairness, integrity and without corruption," Christie commented. "We will, however, keep a watchful eye on the organization."

The government filed a civil racketeering lawsuit against the IBF and its top officials on Nov. 22, 1999. The filing of the lawsuit followed the Nov. 4, 1999 unsealing of a RICO (Racketeering Influenced Corrupt Organization) Indictment naming then-IBF President Robert Lee and two other IBF officials.

The Indictment and lawsuit charged the defendants with running the IBF as a racketeering enterprise, in which they routinely solicited and accepted bribes from fight promoters and managers to fix fighter rankings.

In early 2000, Judge Bissell appointed a Monitor - former U.S. Attorney William Robertson - with broad powers "to oversee the operation of the IBF and its related entities to ensure that it is operated in full compliance with all applicable state and federal laws and in a financially prudent manner, without dissipation of any assets, as well as to ensure that its decisions in the field of boxing are consistent with fairness and integrity," according to Assistant U.S. Attorney Michael A. Chagares.

Lee was convicted by a jury and is currently serving a 22-month sentence in federal prison.

Since Bissell's order in early 2000, the IBF has reformed its internal financial and accounting controls and has instituted many other important reforms such as a Code of Conduct, implementation fo a fair and honest ratings system (with appeal rights for boxers), a corporate restructuring, new Articles of Incorporation and By-Laws, regular officer and director elections, and regular membership meetings, Chagares noted.

Christie lauded Mr. Robertson and his team for the important work they performed.

The Consent Order Judge Bissell signed, among other things:

• dissolves the Monitorship,

• requires the IBF to permanently maintain and enforce its Code of Conduct and Internal Control Procedures,

• permanently enjoins anyone involved with the IBF from soliciting or accepting bribes any payments or gifts that would affect the ranking of boxers or otherwise adversely affect the interests of the IBF, and

• requires IBF officials to affirmatively prevent, detect and remedy abuses and corrupt practices.

The Order also requires the creation of a three-person Independent Review Board with a minimum five-year term that will review and investigate allegations of corruption and violations of the IBF Code of Conduct. That Board will have the right to expel and otherwise punish people.

Finally, if the Board functions ineffectively or if there exists corruption in the IBF, the order permits the Court to order such relief as necessary, such as reinstituting the Monitorship. In addition, the order provides that the Court may expel and otherwise sanction people who violate its order.

Christie credited Assistant U.S. Attorney Michael A. Chagares, chief of U.S. Attorney's Office Civil Division, and Assistant U.S. Attorney Michael with handling the civil RICO lawsuit.

-end-

IBF counsel: Linda P. Torres, Esq. Newark