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FBI mistake ? interesting read

Law007

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When exactly did the FBI decide that NCAA regulations were the law of the land? When did it conclude that, in addition to hunting down terrorists and investigating insider trading, its mandate also included protecting amateurism in college sports?For years, athletic-shoe companies like Nike and Adidas paid coaches to have their team wear their brand of sneaker. Were coaches like Rick Pitino, John Thompson and Jim Valvano being bribed by the shoe company representatives? You certainly could frame it that way.But nobody did. Neither law enforcement nor the NCAA ever protested.

In 2006 — to pick just one among the many, many NCAA scandals over the years — two less-than-reputable agents gave the family of the University of Southern California’s star running back, Reggie Bush, gifts and benefits, including the free use of a house, worth hundreds of thousands of dollars. They did so in the expectation that Bush would sign with them when he decided to turn pro. (He didn’t.)Although the university was severely punished by the NCAA, the FBI chose not to look into the matter. Why would it? Giving a star athlete’s family the use of a house may be unseemly, and it may violate NCAA’s rules regarding amateurism, but it doesn’t violate the laws of the United States. Not even close.And yet on Tuesday, the US attorney for the Southern District of New York — that was Preet Bharara’s old jurisdiction, before the president fired him — announced with great fanfare that it had cracked a college basketball bribery scandal.

According to the complaints, four assistant basketball coaches from big-time sports schools — Auburn, the University of South Carolina, the University of Arizona and the University of Southern California — accepted bribes to steer top prospects to certain agents and financial advisers. (An agent was also indicted.)In addition, James Gatto, the director of global marketing for Adidas Basketball, was charged with bribing top high school players and their families to go to schools like the University of Louisville, with which Adidas has a contract to supply shoes and uniforms. In one case, he is said to have paid a high schooler $100,000.I ask again: What law is being violated? The Gatto indictment is particularly perplexing.Last month, Adidas agreed to pay $160 million over 10 years for the University of Louisville to wear its apparel. That’s called a “deal.” But if the company then pays a high school athlete to attend the school, that’s called a “bribe”?If that’s really the criteria, why isn’t a college scholarship a bribe? The college is trying to lure a student by offering money. Is it all that much different from what Adidas’ executive is charged with doing? The only “wrongdoing,” if you can call it that, is that the athlete has violated the NCAA’s amateurism rules.As for what the assistant coaches have been charged with doing, there is also another word for it: “finder’s fee.” Agents paying assistant coaches to steer top athletes to them is hardly a new phenomenon. Coaches who are caught doing it are invariably punished by the NCAA, and lose their livelihood.But never before has it been considered a criminal matter. Because it’s not.

It is true that the actions for which the coaches and others have been indicted take place in the shadows. And one would hardly call it an example of “best practices” in college coaching.But that’s an issue for the NCAA, not law enforcement. The NCAA has real power to enforce its rules, because it can destroy the careers of both players and coaches who cross it. And despite the obvious fact that college basketball and football are multibillion-dollar businesses, with coaches and others being paid millions of dollars, the NCAA remains adamant that no money ever touch a player’s hand. That’s really the crux of the issue here.But imagine if players had, say, the rights to their own likeness and image, or the right to sign autographs, or the right to be paid by a university or an agent directly. Imagine, that is, that the money was finally out of the shadows. If that were to happen, then “bribes” would suddenly be transformed into “deals.”The absurd conflating of NCAA rules and federal law would end. The FBI really shouldn’t be doing the NCAA’s dirty work.The bureau on Tuesday made the exchange of money that took place between the coaches and others sound truly nefarious. But its incentive is to make those involved appear as guilty as possible.As this case makes its way through the courts, keep in mind one question: Guilty of what?
 
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I didn't understand the issue as simply the Feds trying to uphold NCAA rules. It's that the financial inducements are against NCAA rules, that those infractions if discovered severely penalize public institutions funded in part with taxpayer dollars, and that those NCAA penalties carry significant financial costs.

It's reportedly a line of prosecution that has never been tested in court and may not stand. But that's the premise, not just breaking NCAA rules per se...
 
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I don't believe the FBI cares about college sports other than as a party to interstate money transfers, fraud with the schools being the victims (as well as the U.S. government if as Zipp pointed out in another thread as pertaining to credits to the University) and litigation pertaining to tax evasion and possible falsification of documents to the Securities Exchange Commission.
The agents themselves spoke of Louisville, Arizona, Auburn....even people like Chuck Person....as little fish.
No one knows, either Lousville fans or rival haters of any school, if the NCAA will ever act on this. They have stated numerous times that they exist (compliance division) to monitor rules of the NCAA, not criminal activity. I would say there certainly is precedent as when Kentucky was banned after being caught in the college point shaving scandals years ago, but that was then.
The FBI could well NEVER bring charges against Louisville players or coaches. that has to play out.
At the present time, Louisvilles biggest issues are the PR hit and attempting to reconcile how the money was distributed/ handled to the media and fan base.
What I'm seeing is a split between the fans. Some think getting rid of Petrino is enough. Others think the housecleaning needs to go farther.
The first group could be correct.
The trouble now is every report being dug up makes you question if even Tom Jurich or former President Ramsey are solely responsible
In all honesty, if Tom Jurich was acting with approval, how can the buck stop with him?
 
to the OP, the laws being broken are tax evasion and fraud for lying about the tax evasion. if you fill out your taxes it asks if you were given or gave anyone $13,500 or more. if that's not reported that's tax evasion. if the family receiving the income doesn't report it they are also tax evaders. if the coaches don;'t report the income they are tax evaders.
in simplest terms the entire case i think the case started when one person was found out by the fbi to be hiding money payments. essentially claiming business write offs illegally and then lied about it when confronted after being found out. he was then caught on two charges, evasion and then fraud to hide the evasion. then while confronted to get a lighter sentence this person tells the fbi that he also knows about this other stuff going on with the shoe companies and coaches. he turns the fbi to all this money being exchanged and laundered without being taxed. when you start doing that systematically i think tis wire fraud and rico.so that's the illegality, has nothing to do with sports or ncaa just happens the tax evaders work in that business
 
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to the OP, the laws being broken are tax evasion and fraud for lying about the tax evasion. if you fill out your taxes it asks if you were given or gave anyone $13,500 or more. if that's not reported that's tax evasion. if the family receiving the income doesn't report it they are also tax evaders. if the coaches don;'t report the income they are tax evaders.
in simplest terms the entire case i think the case started when one person was found out by the fbi to be hiding money payments. essentially claiming business write offs illegally and then lied about it when confronted after being found out. he was then caught on two charges, evasion and then fraud to hide the evasion. then while confronted to get a lighter sentence this person tells the fbi that he also knows about this other stuff going on with the shoe companies and coaches. he turns the fbi to all this money being exchanged and laundered without being taxed. when you start doing that systematically i think tis wire fraud and rico.so that's the illegality, has nothing to do with sports or ncaa just happens the tax evaders work in that business
This has been an interesting thread. Personally, I would prefer the FBI was out chasing terrorists, and give info about this issue to the NCAA.
 
to the OP, the laws being broken are tax evasion and fraud for lying about the tax evasion. if you fill out your taxes it asks if you were given or gave anyone $13,500 or more. if that's not reported that's tax evasion. if the family receiving the income doesn't report it they are also tax evaders. if the coaches don;'t report the income they are tax evaders...
I don't think the fraud relates to taxes although the IRS will exact its own form of pain eventually. ...Except for un/under-reported income on a tax return which I don't recall reading about. And some people like the family of Brian Bowen haven't filed a return yet where this income would be accounted for.

It has something to do with falsified compliance statements made to the universities where these OAD kids attend. I'm not knowledgeable in that area, so I can't offer more definitive info...
 
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I don't think the fraud relates to taxes although the IRS will exact its own form of pain eventually. ...Except for un/under-reported income on a tax return which I don't recall reading about. And some people like the family of Brian Bowen haven't filed a return yet where this income would be accounted for.

It has something to do with falsified compliance statements made to the universities where these OAD kids attend. I'm not knowledgeable in that area, so I can't offer more definitive info...

Unless the “payer” of the $100K takes an expense deduction for that money. Then, and only then, will the IRS make an issue of that money and “tax evasion” for the receipent of the money if it is unreported. These are the questions that need to be asked.

GO CARDS - BEAT EVERYBODY!!! God Bless America!!!
 
My simplistic understanding of it is that it's basically a bribery case. Bowen got paid $100k to come to Louisville. Basically a bribe.

And make no mistake, the IRS will come for theirs too. It's how they got Capone in the end.............
 
My simplistic understanding of it is that it's basically a bribery case. Bowen got paid $100k to come to Louisville. Basically a bribe.

And make no mistake, the IRS will come for theirs too. It's how they got Capone in the end.............
True on the bribe aspect but as was said earlier, what’s the difference between that bribe, and the bribe offered in the form of 100K of free education? Oh, and free food and free clothing...
 
here's an excellent article explaining the entire case


https://www.washingtonpost.com/spor...6d061d56efa_story.html?utm_term=.1163085bbe7a

The federal investigation that sent shock waves through college athletics and the sports apparel industry this week began in late 2014, when a little-known financial adviser to a few professional athletes in Pittsburgh became an FBI informant.

That November, according to court documents unsealed Tuesday in New York, Marty Blazer agreed to help the FBI investigate the black market surrounding major college sports. Since 2000, Blazer later would admit, he had paid college athletes if they agreed to become his clients when they turned pro, and he could introduce FBI agents to others he had met along the way.

Three years later, that investigation burst into public view Tuesday, with the arrests of 10 men — including four assistant basketball coaches at Division I schools and a top Adidas executive accused of arranging six-figure bribes for basketball recruits — and a news conference in which a federal prosecutor implied more arrests could come.

How far the fallout from this investigation extends — how many schools, coaches and athletes will be implicated — likely depends on a series of conversations that will take place over the next few months between prosecutors and lawyers for the 10 men arrested late Monday and Tuesday on charges that include conspiracies to commit money laundering, wire fraud and bribery.

In those discussions, according to those familiar with federal investigations, prosecutors probably will apply pressure as they seek evidence against the people not named in the complaints unsealed Tuesday: “Senior Executive-1” with the apparel company later identified as Adidas; “Coach-2,” who works at the university later identified as Louisville; and others at schools referred to without descriptions who apparently also were bidding for players.

A top executive with Adidas, which sponsors more than 90 NCAA programs, was among those charged this week with crimes including bribery and fraud. (Joe Robbins/Getty Images)
[John Feinstein: College coaches know everything that goes on in their programs. Even Rick Pitino]

In one wiretapped conversation described in the complaint, Adidas executive Jim Gatto discussed paying one high school player $100,000 and then was informed by an underling that another school — sponsored by a rival apparel company — was willing to pay $150,000.

Attorneys for Gatto did not respond to requests to comment. Adidas also did not respond to a request to comment.

Adidas sponsors more than 90 NCAA programs, according to the company’s website, including high-profile basketball teams at Indiana and Kansas. Kansas athletics spokesman Jim Marchiony, in an email Wednesday, said Gatto had not been involved in the school’s negotiations with Adidas and Kansas has not been contacted by federal law enforcement. Officials at Indiana did not reply to requests to comment.

Blazer did not reply to a phone call Wednesday, and his attorney declined to comment. Two weeks ago, according to a witness cooperation agreement, Blazer pleaded guilty to charges including wire fraud, securities fraud and identity theft. In exchange for his cooperation, prosecutors agreed not to pursue other charges against Blazer, whose roster of former athlete clients includes former Cleveland Browns wide receiver Greg Little and former NFL running back Anthony Allen.

Through Blazer, court documents allege, FBI agents were able to infiltrate a group of men who collaborated — and profited from — steering star high school basketball players to Adidas-sponsored schools, in exchange for the promise that those players, when they turned professional, would wear Adidas and retain the other men — who included a financial adviser and an agent — for their services.

“You can make millions off of one kid,” sports agent Christian Dawkins said in one wiretapped call, prosecutors allege.

Dawkins is another central figure in the prosecution’s case, according to complaints. Fired in May from his previous agency for allegations of unauthorized use of an NBA player’s credit card, Dawkins was trying to start his own sports agency, and Blazer and an undercover FBI agent posed as prospective investors in this new venture. In one wiretapped phone call, prosecutors allege, Dawkins spoke with the father of a Louisville recruit, arranging a meeting for the father to pick up a $19,500 payment.

In another phone call, according to the complaint, Dawkins told an undercover FBI agent that an Adidas independent contractor named Merl Code had reimbursed Dawkins for the payment to the recruit’s father.

Code was quoted explaining the bribery scheme in another wiretapped call, the complaint alleges: Adidas was “not engaging in a monetary relationship with an amateur athlete; we’re engaging in a monetary relationship with a business manager, and whatever he decides to do with it, that’s between him and the family.”

[Rick Pitino is out as Louisville attempts to clean house following federal investigation]

Sonny Vaccaro, a former marketing executive for Nike, Adidas and Reebok, said he was “shocked at the enormity” of the scheme outlined by prosecutors.

“We’ve seen scandals before. It’s usually a coach and a player,” said Vaccaro, 78, who is credited with creating the now inextricable relationship between shoe companies and major colleges in the 1980s. “This is the whole ball of wax. We’ve got the shoe company. The head of the company’s marketing for basketball. The father of an athlete. A financial adviser. An agent. We have an assistant coach . . . and they’re all on tape.”

In a July 27 meeting in a Las Vegas hotel room that the FBI recorded with video cameras, prosecutors allege, an unnamed Louisville assistant coach, Dawkins, an AAU coach from Florida named Brad Augustine and Blazer discussed a bribe for a high school junior whose mother was apparently anxious to start getting paid.

“Mom is like . . . we need our f------ money,” said Dawkins, the agent, according to the complaint. The men agreed to funnel the money through Augustine, the AAU coach, who took an envelope from an undercover FBI agent containing $12,700 cash meant for the recruit’s mother.

Later in the meeting, the complaint alleges, Dawkins told the men that a recruit whose family was getting $100,000 for him to attend Louisville had benefited from a bidding war. The recruit’s family originally had agreed to a lower price, but another athletic apparel company was “coming with a higher number,” so Dawkins needed to enlist an unnamed coach at Louisville who had strong sway with Gatto, the Adidas executive.

Phone records reviewed by the FBI, according to the complaint, show a phone number used by “Coach-2” had three calls with Gatto in late May and early June. The last call was on June 1. On June 3, the recruit made a surprise decision to attend Louisville.

“Coach-2” is never named in the complaints, and no one from Louisville basketball has been charged with a crime. Also not identified is “Coach-3,” who allegedly asked Gatto to arrange a $150,000 payment to send a recruit to “University-7,” a school whose description matches Miami, another Adidas school. Neither is “Senior Executive-1,” another Adidas employee who was supposed to meet with this recruit, Gatto said on a wiretapped phone call, according to the complaint.

Lee Richards, a former U.S. attorney and white-collar criminal defense attorney in New York, said prosecutors probably will try to negotiate plea deals with those charged in exchange for evidence against high-ranking officials on all sides of the alleged scheme.

“They’re going to seek to get cooperation from the group arrested and think about whether they can move up the chain,” Richards said. “Typically, the government will be looking for evidence against people with more senior positions involved.”

Since leaving the shoe business, Vaccaro has become an outspoken critic of the NCAA and an advocate of ending amateurism in college sports and allowing the players to seek shoe contracts and other endorsements. As he read the complaints, Vaccaro said, he was most struck by the meeting in the hotel room in Las Vegas and all the men seeking to profit from an unnamed high school basketball player.

“Everybody around him in that meeting that the justice department unraveled is making money off of him, and he’s 17 years old,” Vaccaro said. “And he’s not even in the game yet.”
 
from the article- "Two weeks ago, according to a witness cooperation agreement, Blazer pleaded guilty to charges including wire fraud, securities fraud and identity theft. In exchange for his cooperation, prosecutors agreed not to pursue other charges against Blazer, whose roster of former athlete clients includes former Cleveland Browns wide receiver Greg Little and former NFL running back Anthony Allen."
 
from the article- "Two weeks ago, according to a witness cooperation agreement, Blazer pleaded guilty to charges including wire fraud, securities fraud and identity theft. In exchange for his cooperation, prosecutors agreed not to pursue other charges against Blazer, whose roster of former athlete clients includes former Cleveland Browns wide receiver Greg Little and former NFL running back Anthony Allen."

he got caught and then for lesser charge brought the whole system down. like canseco when he was blackballed. will go back to normal in ten years
 
My simplistic understanding of it is that it's basically a bribery case. Bowen got paid $100k to come to Louisville. Basically a bribe...
But it's not just the bribe. It's that it's against NCAA rules, and that could lead to significant penalties that are costly to a taxpayer funded institution--essentially costing taxpayers that the Feds are trying to protect.

The Feds don't give a damn about violating NCAA rules on their own merits. It's what that could lead to...
 
here's an excellent article explaining the entire case...
It's long and detailed, but it doesn't include the premise for the Feds' case. Just the specific charges that could get filed...
 
True on the bribe aspect but as was said earlier, what’s the difference between that bribe, and the bribe offered in the form of 100K of free education? Oh, and free food and free clothing...
The difference is that the latter items are OK by NCAA rules. Cash is not...
 
The way I understand it the bride is a government official, the coach, took money from a vendor/contractor for personal gain. That is why Louisville coaches weren't charged, they didn't take any money for themselves. At this point whole issue with Louisville is an NCAA issue not a federal one, that could change.

The NCAA question is did Bowen every take any money and will Coach 1 or 2 names ever be released by the FBI. I guarantee both attorneys for those two are trying to keep their names redacted because they have committed no crime to date. If that happens what does the NCAA have? No proof Bowen received money and with being 18 does it matter if his parents took money?

The legit question is did Louisville move too fast?
 
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