— The initial shock over the indictment and arrest of 14 FIFA executives and sports marketing officials by U.S. authorities has started to dissipate. However, the fallout is just beginning.

Among those charged is Aaron Davidson, the now-former chair of the North American Soccer League (NASL) Board of Governors and erstwhile President of Traffic Sports USA, Inc., the majority owner of the Cary-based Carolina RailHawks. Traffic Sports USA is a U.S.-based subsidiary of Traffic Sports International Inc., a Brazilian-based sports marketing conglomerate.

Davidson, a Texas native born to parents from Costa Rica and Mexico, is fluent in Spanish, French and Portuguese and earned a law degree from Southern Methodist University.

Thursday, FIFA announced it has provisionally banned Davidson from carrying out any soccer-related activities at the national and international level.

According to a press release issued Wednesday by the U.S. Justice Department, Traffic Sports USA Inc. and Traffic Sports International Inc. pled guilty to wire fraud conspiracy on May 14, as a part of this ongoing DOJ investigation.

The Justice Department also announced that José Hawilla, the owner and founder of the Traffic Sports Group, waived indictment and pled guilty to a four-count information charging him with racketeering conspiracy, wire fraud conspiracy, money laundering conspiracy and obstruction of justice. Hawilla agreed to forfeit over $151 million, $25 million of which was paid at the time of his plea on Dec. 12.

Wednesday, the NASL issued a statement stating the league’s Board of Governors has suspended Davidson, along with all business activities between the league and Traffic Sports, effective immediately. Commissioner Bill Peterson is now serving as active chairperson of the board.

The league has not yet responded to inquiries about what specific “business activities” have been suspended.

The league’s statement added that the RailHawks, the sole NASL club owned by Traffic Sports, will continue to operate in the ordinary course of business. The club's management team will continue to manage the day-to-day operations.

RailHawks general manager Curt Johnson, approached during Wednesday night’s U.S. Open Cup match at WakeMed Soccer Park, said he is not permitted to speak further on the matter at this time.

“I think it’s one of those things that’s going to evolve,” Johnson said. “Tomorrow we may have more news.”

However, reliable sources with knowledge of the situation, speaking on the condition of anonymity, informed WRALSportsFan that Traffic Sports presently remains the owner and funding source for the RailHawks, notwithstanding any implications of the NASL’s statement.

Last month, WRALSportsFan reported that Traffic Sports was in discussions with an England-based investment group to possibly sell the RailHawks along with first-division Portuguese side G.D. Estoril Praia. Speaking to WRALSportsFan, Davidson confirmed that such negotiations were taking place.

Last week, an article out of Portugal reported that João Lagos, the former owner of Estoril, was exercising his right of first refusal to repurchase a majority stake in the club. If finalized, that would scuttle any sale to the England-based investment group.

Reached by text just last Friday, Davidson informed WRALSportFan that while the possible sale of the RailHawks to the England-based investment group was never “100 percent definitive,” its chance are “even less now.”

Traffic Sports has deep historical and fiduciary ties with the NASL. Davidson and Traffic Sports spearheaded the group of soccer team owners—including Selby Wellman, then owner of the RailHawks—who broke away from the United Soccer League in late 2009 to form the NASL. Traffic Sports was the chief financier of the nascent NASL and has previously held a majority stake in both the Fort Lauderdale Strikers and Atlanta Silverbacks, both NASL clubs. When Wellman divested his ownership and dissolved the RailHawks’ corporate entity in late 2010, Traffic Sports stepped in, acquired the RailHawks brand and reformed the club.

The corporate structure of the NASL comprises at least two legal entities: North American Soccer League, LLC and NASL Team Holdings, LLC, both incorporated in Delaware in late 2009. According to documentation provided to WRALSportsFan, Traffic Sports possesses a pro rata membership interest in North American Soccer League, LLC as one of the league’s owners. Moreover, Traffic Sports is a majority shareholder in NASL Team Holdings, LLC, a group comprising the league’s founding owners that retains final say over the league’s annual budget. According to the documentation, interest in NASL Team Holdings, LLC is redeemable at the option of the company in the event a member ceases to be a member of NASL, LLC.

The federal indictments charge Davidson with 12 charges: racketeering conspiracy, four counts of money laundering, six counts of wire fraud and obstruction of justice. Among the allegations are that Davidson aided a bribe scheme to help facilitate various Traffic Sports marketing rights deals, including a bribe of Jeffrey Webb, president of CONCACAF.

The indictment chronicles an alleged conversation between Davidson and Hawilla in March 2014 to discuss the status of Traffic’s ongoing bribe schemes. The indictment quotes Davidson as saying, referring to the practice of paying bribes to obtain commercial rights: “Is it illegal? It is illegal. Within the big picture of things, a company that has worked in this industry for 30 years, is it bad? It is bad.”

The indictment also alleges Davidson alerted co-conspirators to the possibility that they might be recorded over the telephone making admissions of their crimes as far back as March 2014.

According to first-hand source, Davidson attended and chaired a meeting of the NASL’s Board of Governors in Atlanta two weeks ago. A number of significant league items were discussed and approved by the board, including the new Miami FC expansion club announced by the league last week. According to the source, other league board members were never made aware of this ongoing U.S. investigation.