Report: Gillispie, Olson lost millions in Ponzi scheme

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As more details emerge following the death of David Salinas – a Houston-area businessman and founder of a local AAU team — it’s clearer than ever that this will be incredibly embarrassing for the college hoops coaches who invested with him.Report: Gillispie, Olson lost millions in a possible Ponzi scheme.

If they’re lucky.

Salinas committed an apparent suicide Sunday not long after news emerged that he was being investigated by the Securities and Exchange Commission for fraudulent practices that might’ve cost those coaches who invested with Salinas more than $7.8 million. Names of those coaches and their monetary investments surfaced Tuesday.

A report by SI.com’s Pablo S. Torre indicates Texas Tech’s Billy Gillispie, former Arizona coach Lute Olson, Baylor’s Scott Drew and Gonzaga’s Mark Few were among the coaches who lost money.

From the report:

According to documents reviewed by SI.com, the value of Gillispie’s investment alone was purported to be $2.3 million; Olson’s, $1.17 million; Drew’s, $621,000; Few’s, $353,000.

SI.com has identified Few and former Rice, Wichita State and Cornell basketball coach Scott Thompson (investment most recently valued at $65,000) as the latest names to be added to an initial list of nine basketball coaches first reported by CBSSports.com. Those nine included: Gillispie; Olson; Drew; Nebraska coach Doc Sadler ($38,000); Texas A&M-Corpus Christi (and former Rice) coach Willis Wilson ($642,000); Gonzaga assistant (and former Utah head coach) Ray Giacoletti ($1.2 million); United States Merchant Marine Academy (and former Nebraska) coach Danny Nee ($23,000); Augustana College coach Grey Giovanine ($533,000); and former Houston and Nevada coach Pat Foster. Save for Foster, SI.com was able to independently confirm each of those individuals as clients of Salinas.

Most coaches expressed shock at the news and at Salinas’ death. (Some denied investing with him for some odd reason.) But beyond being part of a financial scheme gone awry, there could be NCAA issues as well.

Former Houston coach Tom Penders told Dan Wolken of The Daily that he was approached by Salinas in 2004 to invest $100,000. Penders passed despite  a “strong, strong implication” that it would help Penders’ Houston program gain access to prospects who were part of Salinas’ AAU team.

“He talked about all these coaches that he had investing with him,” Penders told The Daily. “I told him because he was an AAU guy, I couldn’t possibly get involved in that. I said, ‘I think that’s kind of a rules violation, or could be.’ ”

No NCAA rule prevents coaches from investing in legitimate financial plans. But there’s a gray area when there are potential recruits involved. Nearly every coach who invested with him landed one of Salinas’ AAU players.

Losing money is bad enough. Those coaches should hope the NCAA doesn’t decide to make it worse.

UPDATE: There are conflicting reports of how the NCAA will proceed. ESPN says there is “no intention at present of opening a formal probe.” But a Houston TV station says the NCAA is already on the case. So there’s that.

You also can follow me on Twitter @MikeMillerNBC.

NCAA denies extra-year request by NC State guard Henderson

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RALEIGH, N.C. (AP) — The NCAA has denied North Carolina State guard Terry Henderson’s request for another year of eligibility.

Henderson announced the decision Friday in a statement issued by the school.

The Raleigh native played two seasons at West Virginia before transferring to N.C. State and redshirting in 2014-15. He played for only 7 minutes of the following season before suffering a season-ending ankle injury.

As a redshirt senior in 2016-17, he was the team’s second-leading scorer at 13.8 points per game and made a team-best 78 3-pointers.

Henderson called it “an honor and privilege” to play in his hometown.

SMU gets transfer in Georgetown’s Akoy Agau

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SMU pulled in a frontcourt player in Georgetown transfer Akoy Agau, a source confirmed to NBCSports.com. Agau is immediately eligible for next season as a graduate transfer.

The 6-foot-8 Agau started his career at Louisville before transferring to Georgetown after one season. Spending two seasons with the Hoyas, Agau was limited to 11 minutes in his first season due to injuries. He averaged 4.5 points and 4.3 rebounds per game last season.

Coming out of high school, Agau was a four-star prospect but he’s never lived up to that billing in-part because of injuries. Now, Agau gets one more chance to make a difference as he’s hoping to help replace some departed pieces like Ben Moore and Semi Ojeleye.

South Carolina loses big man Sedee Keita to transfer

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South Carolina big man Sedee Keita will transfer from the program, he announced on Friday.

The 6-foot-9 Keita was once regarded as a top-100 national prospect in the Class of 2016, but he never found consistent minutes with the Gamecocks for last season’s Final Four team.

Keita appeared in 29 games and averaged 1.1 points and 2.0 rebounds per game while shooting 27 percent from the field.

A native of Philadelphia, Keita will have to sit out next season before getting three more seasons of eligibility.

Although Keita failed to make an impact during his only season at South Carolina, he’ll be a coveted transfer thanks to his size and upside.

Mississippi State losing two to transfer

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Mississippi State will lose two players to transfer as freshmen Mario Kegler and Eli Wright are leaving the program.

Both Kegler and Wright were four-star prospects coming out of high school as they were apart of a six-man recruiting class that is supposed to be a major foundation for Ben Howland’s future with the Bulldogs.

The 6-foot-7 Kegler was Mississippi State’s third-leading scorer last season as he averaged 9.7 points and 5.5 rebounds per game. Kegler should command some quality schools on the transfer market, especially since he’ll still have three more years of eligibility after sitting out next season due to NCAA transfer regulations. Kegler’s loss is also notable for Mississippi State because it is the second consecutive offseason that Howland lost a top-100, in-state product to transfer after only one season after Malik Newman left for Kansas.

Wright, a 6-foot-4 guard, was never able to find consistent minutes as he was already behind underclass perimeter options like Quinndary Weatherspoon, Lamar Peters and Tyson Carter last season. With Nick Weatherspoon, Quinndary’s four-star brother, also joining the Bulldogs next season, the writing was likely on the wall that Wright wasn’t going to earn significant playing time.

 

N.C. State lands second transfer of day with Utah’s Devon Daniels

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A big recruiting day for N.C. State continued on Saturday afternoon as Utah transfer and guard Devon Daniels pledged to the Wolfpack.

Earlier in the day, N.C. State and new head coach Kevin Keatts landed another quality transfer in UNC Wilmington guard C.J. Bryce.

The 6-foot-5 Daniels just finished his freshman season with the Utes in which he put up 9.9 points 4.6 rebounds and 2.7 assists per game while shooting 57 percent from the field and 40 percent from three-point range. Just like Bryce, Daniels will have to sit out the 2017-18 season due to NCAA transfer regulations before he has three more seasons of eligibility.

N.C. State now has two potential starters on the perimeter for the 2018-19 season with the addition of Bryce and Daniels as it will be interesting to see what kind of talent the Wolfpack can get around them.