Coaches
Alleged To Have Accepted Cash Bribes In Return For Steering College
Players Under Their Control To Corrupt Financial Advisors
Coaches
Alleged To Have Accepted Cash Bribes In Return For Steering College
Players Under Their Control To Corrupt Financial Advisors
Joon
H. Kim, the Acting United States Attorney for the Southern District of
New York, and William F. Sweeney Jr., Assistant Director-in-Charge of
the New York Office of the Federal Bureau of Investigation (“FBI”),
announced the arrest today of 10 individuals, including four Division I
NCAA men’s basketball coaches and a senior executive at a major athletic
apparel company (“Company-1”), in connection with two related fraud and
corruption schemes. In the first scheme, as alleged in the three
Complaints unsealed today, college basketball coaches took cash bribes
from athlete advisors, including business managers and financial
advisors, in exchange for using their influence over college players
under their control to pressure and direct those players and their
families to retain the services of the advisors paying the bribes. In
the second scheme, a senior executive at Company-1, working in
connection with corrupt advisors, funneled bribe payments to high
school-aged players and their families to secure those players’
commitments to attend universities sponsored by Company-1, rather than
universities sponsored by rival athletic apparel companies.
The three
Complaints unsealed today charge four coaches, CHUCK CONNORS PERSON,
LAMONT EVANS, EMANUEL RICHARDSON, a/k/a “Book,” and ANTHONY BLAND, a/k/a
“Tony”; three athlete advisors, CHRISTIAN DAWKINS, MUNISH SOOD, and
RASHAN MICHEL; a senior executive at Company-1, JAMES GATTO, a/k/a
“Jim,” along with two individuals affiliated with Company-1, MERL CODE
and JONATHAN BRAD AUGUSTINE, with wire fraud, bribery, travel act, and
conspiracy offenses. The defendants were all arrested this morning in
various parts of the country. DAWKINS, SOOD, and AUGUSTINE are
scheduled to appear before U.S. Magistrate James L. Cott in federal
court later today.
Acting Manhattan
U.S. Attorney Joon H. Kim said: “The picture of college basketball
painted by the charges is not a pretty one – coaches at some of the
nation’s top programs taking cash bribes, managers and advisors circling
blue-chip prospects like coyotes, and employees of a global sportswear
company funneling cash to families of high school recruits. For the ten
charged men, the madness of college basketball went well beyond the Big
Dance in March. Month after month, the defendants allegedly exploited
the hoop dreams of student-athletes around the country, treating them as
little more than opportunities to enrich themselves through bribery and
fraud schemes. The defendants’ alleged criminal conduct not only
sullied the spirit of amateur athletics, but showed contempt for the
thousands of players and coaches who follow the rules, and play the game
the right way.”
FBI Assistant
Director William F. Sweeney Jr. said: “Today’s charges detail a corrupt
practice in which highly rated high school and college basketball
players were steered toward lucrative business deals with agents,
advisors, and an international athletics apparel company. As alleged,
NCAA Division I and AAU coaches created a pay-to-play culture, agreeing
to provide access to their most valuable players while also effectively
exerting their influence over them. Today’s arrests should also serve
as a warning to those who conduct business this way in the world of
college athletics.”
According to allegations contained in the three Complaints[1] unsealed today in Manhattan federal court, and other publicly available documents:
According to allegations contained in the three Complaints[1] unsealed today in Manhattan federal court, and other publicly available documents:
Overview of the Investigation
The charges in the
Complaints result from a scheme involving bribery, corruption, and fraud
in intercollegiate athletics. Since 2015, the U.S. Attorney’s Office
for the Southern District of New York and the FBI have been
investigating the criminal influence of money on coaches and
student-athletes who participate in intercollegiate basketball governed
by the NCAA. The investigation has revealed two related schemes. In
the first scheme (the “Coach Bribery Scheme”), athlete advisors –
including financial advisors and business managers, among others –
allegedly paid bribes to assistant and associate head basketball coaches
at NCAA Division I universities, and sometimes directly to
student-athletes at those universities, facilitated by the coaches. In
exchange for the bribes, the coaches agreed to pressure and exert
influence over student-athletes under their control to retain the
services of the bribe-payors once the athletes entered the National
Basketball Association (“NBA”).
In the second
scheme (the “Company-1 Scheme”), athlete advisors working with
high-level Company-1 employees, allegedly paid bribes to
student-athletes playing at, or bound for, NCAA Division I universities,
and to the families of such athletes. These bribes were paid in
exchange for a commitment by the athletes to matriculate at a specific
university sponsored by Company-1, and a promise to ultimately sign
agreements to be represented by the bribe-payors once the athletes
entered the NBA.
Participants in
both schemes allegedly took steps to conceal the illegal payments,
including (i) funneling them to athletes and/or their families
indirectly through surrogates and entities controlled by the scheme
participants; and (ii) making or intending to make misrepresentations to
the relevant universities regarding the involvement of student-athletes
and coaches in the schemes, in violation of NCAA rules.
As described in the
complaints, these schemes operated as a fraud on the universities
involved, all of which provide scholarships to players and salaries to
coaches with the understanding and expectation that the players
and coaches are in full compliance with all relevant NCAA rules and
regulations. Moreover, these schemes subject the universities to
substantial potential penalties by the NCAA, including, but not limited
to, financial fines and penalties as well as the potential loss of
eligibility to compete in various NCAA events.
The Coach Bribery Schemes
The first scheme
alleged in the Complaints entailed bribes by DAWKINS and SOOD, among
others, to four men’s basketball coaches, PERSON, EVANS, RICHARDSON and
BLAND, in exchange for the coaches’ agreement to direct players under
their control, and the players’ families, to retain DAWKINS and SOOD
once the players entered the NBA. These corrupt arrangements, which
turn on the coaches’ abuse of their positions of trust at the
universities, are valuable both to the coaches, who receive cash bribes,
and to the bribe-payors, for whom securing a future NBA player as a
client can prove extremely profitable.
Allegations Involving Chuck Person
Beginning in or
around 2016, and continuing into 2017, PERSON, a former NBA player and
the associate head coach at University-1, abused his coaching position
at University-1 to solicit and obtain approximately $91,500 in bribe
payments from a financial advisor and business manager for professional
athletes, who, unbeknownst to PERSON, was providing information to law
enforcement (“CW-1”). In exchange for the bribes, PERSON agreed to
direct certain University-1 basketball players to retain the services of
CW-1 when those student-athletes entered the NBA. The bribe payments
initially were arranged by MICHEL, who had a preexisting relationship
with PERSON and operated a clothing store that specialized in making
bespoke suits for professional athletes. Over the course of the scheme,
PERSON did, in fact, arrange multiple meetings between CW-1 and players
and/or their family members, in which he falsely touted CW-1’s
qualifications without disclosing that he was being bribed to recommend
CW-1. For example, at one meeting, PERSON told the mother of a player
at University-1 that CW-1 was PERSON’s own financial advisor and had
also advised NBA Hall of Fame inductee (and University-1 alumnus)
Charles Barkley, neither of which was true. PERSON similarly told
another player that CW-1 would purchase him a separate cell phone over
which they could communicate so as to conceal the nature of the
scheme.
In addition to the
bribe payments that PERSON solicited and received, PERSON also arranged
for CW-1 to make payments directly to the families of the players PERSON
was steering to CW-1. PERSON further claimed to have given
approximately $18,500 of the bribe money he received to the families of
two student-athletes whom PERSON sought to steer to retain CW-1.
Allegations Involving Lamont Evans
Beginning in 2016,
and continuing into 2017, EVANS solicited at least $22,000 from CW-1 and
SOOD in exchange for EVANS’s agreement to exert his official influence
over certain student-athletes that EVANS coached at two NCAA Division I
universities, University-3 and University-4, to retain SOOD and CW-1’s
business management and financial advisory services once those players
entered the NBA. In return, EVANS (who had received bribe payments from
DAWKINS previously), promised SOOD and CW-1 that he would steer
multiple specific players to retain their services. Indeed, as a part
of the scheme, EVANS arranged for CW-1 to meet with a student-athlete
EVANS coached at University-4 (“Player-4”), and arranged for SOOD to
meet with the mother of another student-athlete EVANS had previously
coached at University-3, for the purpose of pressuring them to retain
SOOD and CW-1. Moreover, and in return for the bribe payments, EVANS
falsely touted the services of SOOD and CW-1 to players and their
families, telling Player-4, for example, that CW-1 was “my guy,” adding,
falsely, that CW-1 “has helped me personally. And I trust that,” and
assuring Player-4 that “[i]t’s going to benefit you. I promise you
that.” In explaining the benefit of bribing an assistant coach such as
EVANS, DAWKINS explained to SOOD and CW-1 that because coaches like
EVANS could not get “caught” receiving bribes because “his job is on the
line,” EVANS and other corrupt coaches would have an incentive to
“block” other athlete advisors from accessing the players under the
coaches’ supervision and directing those players to the bribe-payors.
Allegations Involving Emanuel Richardson, a/k/a “Book”
Beginning in or
around February 2017, and continuing through September 2017, DAWKINS and
SOOD, along with two undercover law enforcement agents posing as
financial backers of CW-1 (“UC-1” and “UC-2,” respectively), paid or
facilitated the payment of $20,000 in bribes to RICHARDSON in return for
RICHARDSON’s commitment to steer players under his control at
University-4 to retain DAWKINS and SOOD’s services upon entering the
NBA. During that period, RICHARDSON repeatedly assured DAWKINS and SOOD
that RICHARDSON would use his influence over players at Univeristy-4 to
direct them to DAWKINS and SOOD, explaining, with respect to one
particular player DAWKINS and SOOD sought to sign (“Player-6”), that
Player-6 would be “insulated in who he talks to.” RICHARDSON added,
with respect to himself, that “you’re looking at the guy” whom Player-6
trusted. RICHARDSON subsequently facilitated at least one meeting
between DAWKINS, SOOD, and a representative of Player-6 for the purpose
of having that representative commit the player to retain DAWKINS and
SOOD’s business management and financial advisory services. In
addition, RICHARDSON appears to have provided a portion of the bribe
money he received from DAWKINS, SOOD, UC-1, and UC-2 to at least one
prospective high school basketball player (“Player-5”) in order to
recruit that player to play for University-4.
Allegations Involving Anthony Bland, a/k/a “Tony,”
Beginning in or
around July 2017, and continuing into September 2017, DAWKINS and SOOD,
working with UC-1, paid and/or facilitated the payment of at least
$13,000 in bribes to BLAND in exchange for BLAND’s agreement to exert
his official influence over certain student-athletes BLAND coached at
University-5, to retain DAWKINS and SOOD’s business management and/or
financial advisory services once those players entered the NBA. In
particular, as BLAND told DAWKINS and SOOD, in return for their bribe
payments, “I definitely can get the players. . . . And I can definitely
mold the players and put them in the lap of you guys.” In addition,
and as part of the scheme, at BLAND’s direction DAWKINS and SOOD paid or
facilitated the payment of an additional $9,000 directly to the
families of two student-athletes at University-5. In return, BLAND
facilitated a meeting between DAWKINS and SOOD and a relative of a
player currently attending University-5 (“Player-9”) for the purpose of
pressuring Player-9 to retain DAWKINS and SOOD.
The Company-1 Scheme
In addition to the
Coach Bribery Scheme described above, the investigation further revealed
a second, related scheme. In the second scheme, JAMES GATTO, a/k/a
“Jim,” a high-level executive at Company-1, and MERL CODE, an individual
affiliated with Company-1 and its high school and college basketball
programs, conspired to pay high school basketball players or their
families for commitments by those players to attend and play for
aCompany-1-sponsored university, and to sign with Company-1 upon turning
professional. In addition, DAWKINS, SOOD, and JONATHAN BRAD AUGUSTINE
brokered and facilitated the corrupt payments in exchange for a promise
that the players also would retain the services of DAWKINS and SOOD upon
turning professional.
Specifically, in or
around 2017, GATTO, CODE, DAWKINS, AUGUSTINE, and SOOD agreed to pay
bribes to at least three high school basketball players or their
families in the following manner:
Allegations Involving Player-10 and University-6
First, GATTO, CODE,
DAWKINS, and SOOD worked together to funnel $100,000 from Company-1 to
the family of a high school basketball player (“Player-10”) in exchange
for Player-10’s commitment to play at an NCAA Division I university
whose athletic programs are sponsored by Company-1 (“University-6”), and
in further exchange for a commitment from Player-10 to retain DAWKINS
and SOOD, and to sign with Company-1, once Player-10 joined the NBA. DAWKINS
told CW-1 and others on a recorded conversation that he did so at the
request of a coach at University-6 (“Coach-2”), and call records show
that GATTO spoke directly with Coach-2 multiple times in the days before
Player-10 publicly committed to attending University-6.
Moreover, because
the payments to the family of Player-10 were both in violation of NCAA
rules and illegal, they were disguised by GATTO, CODE, DAWKINS, and SOOD
using fake purchase orders, invoices and related documents to make them
appear to be payments from Company-1 to CODE’s company. As CODE
explained to DAWKINS, while such payments are sometimes made “off the
books,” for this particular payment, GATTO and CODE had identified it to
Company-1 as “as a payment to my team, to my organization, so it’s on
the books, [but] it’s not on the books for what it’s actually for.”
Indeed, the money, once allocated by Company-1, was funneled back to
DAWKINS to use to pay the father of Player-10 in cash.
Allegations Involving Player-11 and University-6
Second, DAWKINS and
AUGUSTINE agreed to facilitate payments to the family of another high
school basketball player (“Player-11”) in exchange for Player-11’s
commitment to play at University-6 and ultimately to retain DAWKINS’s
services. While these payments were not directly funded by Company-1,
they were made to benefit Company-1, which, as noted, sponsors
University-6, and with the expectation that Company-1 would provide
additional funding to AUGUSTINE in return. AUGUSTINE noted, “all
[Coach-2] has to do is pick up the phone and call somebody [and say]
these are my guys, they’re taking care of us.”
Because these
payments from DAWKINS to Player-11’s family were both in violation of
NCAA rules and illegal, AUGUSTINE suggested that the “easiest way” for
DAWKINS to provide money for Player-11 and his family would be to send
the money to AUGUSTINE’s “non-profit for the grassroots team,” although
AUGUSTINE confirmed that he also would accept cash.
As DAWKINS
subsequently explained to UC-2 in the context of providing such money to
AUGUSTINE and others, “obviously some of it can’t be completely
accounted for on paper because some of it is, whatever you want to call
it, illegal.”
Allegations Involving Player-12 and University-7
Third, GATTO, CODE,
DAWKINS, and AUGUSTINE agreed to make payments of as much as $150,000
from Company-1 to another high school basketball player (“Player-12”) in
order to secure Player-12’s commitment to play at an NCAA Division I
university whose athletic programs are also sponsored by Company-1
(“University-7”). Because Player-12 played for an amateur team run by
AUGUSTINE and sponsored by Company-1, AUGUSTINE, with the assistance of
CODE and DAWKINS, attempted to broker the deal to secure Player-12’s
commitment to attend University-7 rather than a school sponsored by a
rival athletic apparel company. In exchange for the payment, Player-12
similarly was expected to commit to retaining DAWKINS’s services and
signing with Company-1 once Player-12 joined the NBA.
Much as with the
payments to Player-10 described above, according to intercepted calls,
GATTO stated that the payments from Company-1 to Player-12 were
allegedly requested specifically by a coach at University-7 (“Coach-3”),
who allegedly called GATTO directly and who, according to DAWKINS,
CODE, and AUGUSTINE, “knows everything” and, in particular, “knows
something’s gotta happen for” Player-12 to commit to attending
University-7.
* * *
Defendant
|
Age
|
Hometown
|
Charges (Potential Maximum Term of Imprisonment)
|
Chuck Connors Person
|
53
|
Auburn, AL
|
Bribery
conspiracy, Solicitation of bribes, Honest services fraud conspiracy,
Honest services fraud, Wire fraud conspiracy; Travel Act conspiracy (80
years)
|
Rashan Michel
|
43
|
Smyrna, GA
|
Bribery conspiracy, Solicitation of bribes, Honest services fraud conspiracy, Honest services fraud,
Wire fraud conspiracy; Travel Act conspiracy (80 years)
|
Lamont Evans
|
40
|
Stillwater, OK
|
Bribery conspiracy, Solicitation of bribes, Honest services fraud conspiracy, Honest services fraud,
Conspiracy to commit wire fraud; Travel Act conspiracy (80 years)
|
Emanuel Richardson, a/k/a “Book”
|
44
|
Tucson, AZ
|
Bribery conspiracy, Solicitation of bribes, Honest services fraud conspiracy, Honest services fraud,
Conspiracy to commit wire fraud; Travel Act conspiracy (80 years)
|
Anthony Bland, a/k/a “Tony”
|
37
|
Los Angeles, CA
|
Bribery conspiracy, Solicitation of bribes, Honest services fraud conspiracy, Honest services fraud,
Conspiracy to commit wire fraud; Travel Act conspiracy (80 years)
|
Christian Dawkins
|
24
|
Atlanta, GA
|
Bribery
conspiracy, Payments of bribes, Honest services fraud conspiracy, Honest
services fraud (3 counts), Wire fraud conspiracy (2 counts), Wire fraud
(2 counts), Travel Act conspiracy, Money laundering conspiracy (200
years)
|
Munish Sood
|
45
|
Trenton, NJ
|
Bribery
conspiracy, Payments of bribes, Honest services fraud conspiracy, Honest
services fraud (3 counts), Wire fraud conspiracy (2 counts), Wire fraud
(2 counts), Travel Act conspiracy, Money laundering conspiracy (200
years)
|
James Gatto, a/k/a “Jim”
|
47
|
Wilsonville, OR
|
Wire fraud conspiracy, Wire fraud (2 counts), Money laundering conspiracy (80 years)
|
Merl Code
|
43
|
Greer, SC
|
Wire fraud conspiracy, Wire fraud (2 counts), Money laundering conspiracy (80 years)
|
Jonathan Brad Augustine
|
32
|
Winter Garden, FL
|
Wire fraud conspiracy, Wire fraud (2 counts), Money laundering conspiracy (80 years)
|
The maximum
potential sentences are prescribed by Congress and are provided here for
informational purposes only, as the sentencing of the defendants will
be determined by a judge.
Mr. Kim praised the
work of the FBI and the Criminal Investigators of the United States
Attorney’s Office for the Southern District of New York.
Anyone with
information relevant to the investigation is asked to contact the FBI at
the special phone number established to receive such information, (212)
384-2135.
The case is being
handled by the Office’s Public Corruption Unit. Assistant United States
Attorneys Robert Boone, Russell Capone, Edward B. Diskant, and Noah
Solowiejczyk are in charge of the prosecution.
[1]
As the introductory phrase signifies, the entirety of the texts of the
Complaints and the descriptions of the Complaints set forth below
constitute only allegations and every fact described should be treated
as an allegation.
Topic(s):
Financial Fraud
Component(s):
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