Four coaches named in alleged corruption scandal

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Four college basketball assistant coaches have been named in an alleged corruption scandal, according to documents released by the U.S. District Attorney in New York on Tuesday morning.

Arizona’s Book Richardson, USC’s Tony Bland, Auburn’s Chuck Person and Oklahoma State’s Lamont Evans were the four coaches charged with fraud and corruption.

Managers, financial advisers and representatives of a major international sportswear company are also involved in the investigation. Jim Gatto, an executive with Adidas, was arrested, as was Christian Dawkins, a former NBA agent who was fired from ASM Sports after he used a player’s credit card to run up $42,000 of charges on Uber.

The offices of ASM were reportedly raided by the FBI on Tuesday, according to Darren Heitner of Forbes. The computer of Andy Miller, who represents the likes of Kristaps Prozingis, Austin Rivers and Myles Turner, was seized, according to Heitner

Munish Sood, a financial advisor, was also among the people caught up in the charges.

Since 2015, the FBI has been investigating the criminal influence of money on coaches and student-athletes who participate in intercollegiate basketball governed by the NCAA, federal authorities said.

They said the probe has revealed numerous instances in which bribes were paid by athlete advisers, including financial advisers and associate basketball coaches, to assistant and associate basketball coaches to exert influence over student-athletes so the athletes would retain the services of those paying the bribes.

In criminal complaints, investigators said basketball coaches have the ability to provide access to the student-athletes to sports agents, financial advisers, business managers and others. Person was accused of accepting money from an agent who was trying to develop a relationship with Austin Wiley in order to sign him, a sophomore on the Tigers that was a four-star prospect coming out of high school. Richardson, Bland and Evans were accused of similar crimes.

“In exchange for bribes, Evans, Richardson and Bland agreed to direct certain student-athletes under their supervision to retain the business management and financial advisory services of Dawkins, Sood and/or [cooperating witness 1],” the documents read.

The cooperating witness was not named. In the documents released by the US Attorney on Tuesday, the witness is said to have agreed to a settlement with the Securities and Exchange Commission over violations he committed “on or about May 6th, 2016”. On May 6th, 2016, the SEC announced fraud charges against Louis Martin Blazer III, who founded Blazer Capital Management and who was accused of investing more than $2 million of professional athlete’s money without permission. Joon Kim, the district attorney speaking at a press conference this afternoon, said that the cooperating witness was a financial advisor that the SEC had brought charges against last year for misuse of athlete’s money.

ESPN obtained documents confirming that Blazer was the cooperating witness.

Gatto, who is the director of global sports marketing for Adidas, is alleged to have funneled $100,000 to a player that can be assumed is Brian Bowen, a freshman at Louisville. He is referred to in the documents as “an all-american high school basketball player” that committed to an Adidas-sponsored school in June. Bowen committed to Louisville, an Adidas school, in June.

Louisville coach Rick Pitino issued a statement Tuesday evening regarding the matter.

“These allegations come as a complete shock to me,” the statement said. “If true, I agree with the U.S. Attorneys Office that these third-party schemes, initiated by a few bad actors, operated to commit a fraud on the impacted universities and their basketball programs, including the University of Louisville. Our fans and supporters deserve better and I am committed to taking whatever steps are needed to ensure those responsible are held accountable.”

Adidas also released a statement.

“Today, we became aware that federal investigators arrested an Adidas employee. We are learning more about the situation. We’re unaware of any misconduct and will fully cooperate with authorities to understand more,” the statement said.

“Many such coaches have enormous influence over the student-athletes who play for them, in particular with respect to guiding those student-athletes through the process of selecting agents and other advisers when they prepare to leave college and enter the NBA,” the complaints said. “The investigation has revealed several instances in which coaches have exercised that influence by steering players and their families to retain particular advisers, not because of the merits of those advisers, but because the coaches were being bribed by the advisers to do so.”

Person was arrested in Alabama; Bland in Tampa, Florida; Evans in Oklahoma; and Richardson in Arizona.

Person, the associate head coach at Auburn University, was the fourth overall pick in the NBA draft in 1986 and was selected by the Indiana Pacers. He played for five NBA teams over 13 seasons.

The Associated Press contributed to this report.

Iowa’s McCaffery says, “I’ve turned programs in” for cheating

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There aren’t a lot of unwritten rules in basketball. One of them, though, is that if a coach breaks a real rule, other coaches don’t speak up. Coaches would seemingly rather lose out on a recruit or transfer rather than turning in one of their own for suspected malfeasance.

Not for Fran McCaffery, though.

The Iowa coach was asked Monday about the FBI investigation into corruption into college hoops, and freely volunteered that he has previously turned other programs in for violations – and that he’ll do it again, if need be.

“I’ve turned programs in and I’ll continue to do that when I know that there’s something going on,” McCaffery said at the program’s media day, according to the Des Moines Register. “But a lot of times you don’t know what’s going on. So can you police yourselves? Only if you know something’s going on. But even then it’s hard for the NCAA to do something.”

Turning in another program for violations is really one of the biggest taboos in the coaching profession. That’s why you get coaches look silly in blocking schools for transfers when tampering is suspected, rather than a coach just reporting tampering.

McCaffery’s tactic, while probably frowned upon by many of his colleagues, is probably the best weapon the NCAA has in combating cheating. If coaches make it clear they won’t tolerate cheating – or that if it occurs, it won’t go unremarked upon – that will go along way in changing a culture and system that the FBI is going to potentially uncover with its wide-ranging investigation that already has resulted in 10 people’s arrest and a Hall of Fame coach’s firing.

“Any time the game is cleaned up,” McCaffery said, “it’s better for all of us.”

Report: Louisville offered $1.5 million settlement to Pitino

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When it became clear that Louisville and Rick Pitino were going to part ways, much of the discussion instantly turned to the more than $40 million left on the coach’s contract.

The school reportedly tried to avoid that whole ordeal Monday, but Pitino apparently wasn’t interested.

Louisville offered to pay $1.5 million to a charity started by Pitino in exchange for his resignation, according to WDRB-TV Louisville. Pitino did not accept and was then fired for cause by the Louisville board.

It’s little surprise to see Pitino reject such an offer with so many more millions on the table should he (almost certainly) begin legal proceedings trying to recoup the cash that Louisville says it doesn’t owe him by firing for cause.

I vehemently reject (the school’s) right to do so ‘for cause,’” Pitino said in an affidavit sent to the school. “I have given no ’cause’ for termination of my contract.”

The firing came on the heels of the latest controversy  to hit Louisville under Pitino’s watch. First came the escort scandal that rocked the program, but now the school is part of the FBI investigation into corruption in college basketball. Ten people were arrested as part of the probe, including an adidas executive who is alleged to have orchestrated getting $100,000 to the family of a recruit in order to facilitate his commitment to the Cardinals program.

Pitino may be out at Louisville, but with more than $40 million at stake, the school surely hasn’t seen the last of him.

Louisville officially fires Rick Pitino

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Louisville’s Athletic Association has officially fired head coach Rick Pitino nearly three weeks after an FBI investigation into corruption in college basketball linked the Hall of Fame head coach and his program to a $100,000 payment from Adidas to a recruit that enrolled at Louisville.

The association, made up of trustees, faculty, student and administrators, oversees Louisville athletics. They voted unanimously to fire Pitino.

Pitino has $44 million in salary remaining on his contract, which extends through the 2026 season. He was with Louisville for 16 seasons.

Pitino had been ‘effectively fired‘ by the university on September 27th, the day after the scandal first broke.

Earlier this summer, Louisville had received their sanctions from the NCAA in a different scandal that enveloped Pitino’s program. In October of 2015, a book was published by an escort named Katina Powell who alleged that a member of Pitino’s staff had paid for strippers and prostitutes for recruits and members of the Louisville team, some of whom were underage. The NCAA’s sanctions, which included vacating the 2012 Final Four and 2013 National Title in addition to Louisville’s self-imposed 2016 postseason ban, were handed down in June, two weeks after a Louisville coach had allegedly helped facilitate a $100,000 payment from Adidas to Brian Bowen’s family and six weeks before another coach would allegedly attempt to do the same for a 2019 prospect.

Kansas’ Self: Adidas case a “dark cloud on our profession’

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LAWRENCE, Kan. (AP) — Kansas coach Bill Self had come to know James Gatto well over the years, along with just about everyone else involved with the college basketball side of the athletic apparel giant Adidas.

It comes with the territory as one of the company’s flagship schools.

But when Self first heard that Gatto had been swept up in a wide-ranging FBI investigation, centered on Louisville but uncovering corruption elsewhere in college basketball, the Jayhawks’ coach admitted being “very disappointed and disheartened” and likened it to a “dark cloud for our profession.”

Prosecutors have accused the 47-year-old Gatto of conspiring with coaches and others to funnel payments to top prospects and their families to win commitments to play at schools sponsored by Adidas. The idea was that their relationship with Adidas would continue whenever they reached the professional level.

The family of one prospect was allegedly paid $100,000 to commit, according to court documents, and the school was later revealed to be Louisville. The school has since placed coach Rick Pitino on administrative leave while the federal investigation is being resolved. Nine others, including former Oklahoma State assistant Lamont Evans, have been charged in the case.

Self said during a lengthy interview Friday that the cash payments from Adidas surprised him, but “what is not surprising is third parties’ involvement in recruiting. Everyone should know that.”

“That’s prevalent everywhere,” he said. “There’s nothing illegal about agents talking to kids and their families in ninth and 10th grade. There’s nothing illegal about shoe companies funding AAU programs. That is what’s been encouraged and done, so it shouldn’t be a surprise you could have influence from third parties.”

Kansas officials insist they have not been contacted by the FBI, and the school is not under any sort of investigation. It

Kansas recently reached a 12-year contract extension with Adidas that will ultimately provide the school with $191 million in sponsorship money and apparel. Self suggested the affiliation is being used by rivals on the recruiting trail.

“Whenever in recruiting there is something out there that has been reported, whether it’s reliable or unreliable, total myth, whatever, there’s usually competitors that make sure that information gets to people. Unfortunately, that’s how it works,” Self said. “You can say that’s negative recruiting … but a lot of times the things that are reported are so inaccurate it puts you on the defense.”

The Jayhawks already have commitments from two top-100 prospects in 6-foot-9 forward Silvio de Sousa from Florida’s IMG Academy and 6-10 center David McCormack from Virginia’s Oak Hill Academy.

They are also in the mix for several more top-50 prospects in what could be a crucial class for them.

“I’d be lying,” Self said, “if I told you we hadn’t discussed these issues with kids. And has it hurt us to date? I don’t think it has. But it’s not signing day, either.”

Attorney makes case for Louisville to retain Pitino as coach

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LOUISVILLE, Ky. (AP) — Rick Pitino’s attorney has told the Louisville Athletic Association that it should not fire the coach of the men’s basketball program because his client “could not have known” about activities alleged in a national federal investigation of the sport.

Steve Pence made his case Monday while the ULAA was meeting to discuss whether to fire Pitino nearly three weeks after the school acknowledged the program’s involvement in the investigation. The association board is still meeting and has not announced its decision.

Association, a separate body that oversees Louisville’s sports programs and comprised of trustees, faculty, students and administrators, on Oct. 2 authorized university interim President Greg Postel to begin the process of firing Pitino for cause after Postel placed him on unpaid administrative leave Sept. 27.

Pitino, 65, is not named in court complaints in the federal probe but Postel said in a disciplinary letter that the allegations violated his contract.

Pence has contended that Louisville rushed to judgment and made his case before the board for 45 minutes on Monday.

He said Pitino should be retained and noted, “The coach did not engage in any of this activity, he didn’t know about the activity. I think we made a very compelling case to the board, I think they listened attentively and we’ll just have to wait and see what they say.”

Pitino has coached 16 years with the program, a run that included winning the 2013 NCAA championship but was tarnished by several embarrassing off-court incidents.