If your curious about the details...
"On Tuesday, the FBI announced that 10 people, including four college basketball assistant coaches, were arrested as part of a three-year investigation into bribes and other corruption in the sport.
Assistant coaches from Arizona, Auburn, Louisville, Miami, Oklahoma State and USC were implicated in the investigation, and on Wednesday, Louisville announced that athletic director Tom Jurich and longtime basketball coach Rick Pitino were placed on administrative leave.
Joon H. Kim, acting U.S. Attorney for the Southern District of New York, told reporters that the investigation was ongoing. There might be additional arrests and more schools involved.
Court records and sealed complaints released by the U.S. Attorney's office reveal an elaborate, clandestine FBI investigation that involves wiretaps, surveillance video, undercover agents and cooperating witnesses. Here is a look at some of the findings:
First the coaches ...
On May 6, 2016, Louis Martin "Marty" Blazer III, a Pittsburgh-based financial adviser, was charged by the Securities and Exchange Commission with wire fraud and accused of siphoning $2.35 million from the accounts of several professional athletes in order to invest in movie projects and make Ponzi-like payments. According to the SEC's complaint, when its examiners uncovered the unauthorized withdrawals and asked Blazer to explain them, he lied and produced falsified documents in an attempt to hide his misconduct.
The SEC alleged that Blazer, who founded Blazer Capital Management as a "concierge" firm targeting pro athletes and other high-worth individuals as clients, took the money from five clients without their authorization from October 2010 to January 2013 to invest in two movie projects. The SEC alleged Blazer had personal financial interest in the development of both films, one of which was called "Mafia the Movie" and the other called "Sibling."
Federal prosecutors have announced charges of fraud and corruption in college basketball. Among those arrested and charged are four assistant coaches at Auburn, Arizona, Oklahoma State and USC.
Federal prosecutors stunned college basketball by announcing charges for four Division I coaches. Although the charges stem from a three-year investigation, much is still to be determined. Here's what you need to know.
The SEC complaint said Blazer actually pitched the movie project to an athlete as an investment opportunity, but that client "expressly refused to make the investment." Blazer allegedly took $550,000 from the client's account and invested in the film projects. When the client later learned about Blazer's actions and demanded repayment, Blazer then took money out of a different athlete's account to make repayment in "Ponzi-like fashion."
On Aug. 4 of this year, the SEC ordered Blazer to make restitution of $1.8 million and pay a civil penalty of $150,000. The SEC had barred him from the industry in May 2016. As part of a plea agreement with the U.S. Attorney's office, he agreed to plead guilty to securities fraud, aggravated identity theft, false statements and documents, and two counts of wire fraud, according to a Sept. 19 cooperation agreement.
It wasn't the first time Blazer was investigated by financial regulators. According to the Pittsburgh Post-Gazette, an unidentified NFL player filed a complaint against Blazer in March 2011 with the Financial Industry Regulatory Authority, an industry-funded group that regulates financial advisers and the firms where they work.
The football player alleged he lost $4 million because Blazer misappropriated or mismanaged his accounts between 2001 and 2009. Blazer told FINRA investigators that the player was recklessly withdrawing money from his accounts, forcing his firm to sell other assets in order to generate cash. An arbitrator awarded the football player $850,000 in May 2012."
More:
The inside story of how the FBI rocked college basketball
"On Tuesday, the FBI announced that 10 people, including four college basketball assistant coaches, were arrested as part of a three-year investigation into bribes and other corruption in the sport.
Assistant coaches from Arizona, Auburn, Louisville, Miami, Oklahoma State and USC were implicated in the investigation, and on Wednesday, Louisville announced that athletic director Tom Jurich and longtime basketball coach Rick Pitino were placed on administrative leave.
Joon H. Kim, acting U.S. Attorney for the Southern District of New York, told reporters that the investigation was ongoing. There might be additional arrests and more schools involved.
Court records and sealed complaints released by the U.S. Attorney's office reveal an elaborate, clandestine FBI investigation that involves wiretaps, surveillance video, undercover agents and cooperating witnesses. Here is a look at some of the findings:
First the coaches ...
On May 6, 2016, Louis Martin "Marty" Blazer III, a Pittsburgh-based financial adviser, was charged by the Securities and Exchange Commission with wire fraud and accused of siphoning $2.35 million from the accounts of several professional athletes in order to invest in movie projects and make Ponzi-like payments. According to the SEC's complaint, when its examiners uncovered the unauthorized withdrawals and asked Blazer to explain them, he lied and produced falsified documents in an attempt to hide his misconduct.
The SEC alleged that Blazer, who founded Blazer Capital Management as a "concierge" firm targeting pro athletes and other high-worth individuals as clients, took the money from five clients without their authorization from October 2010 to January 2013 to invest in two movie projects. The SEC alleged Blazer had personal financial interest in the development of both films, one of which was called "Mafia the Movie" and the other called "Sibling."
Federal prosecutors have announced charges of fraud and corruption in college basketball. Among those arrested and charged are four assistant coaches at Auburn, Arizona, Oklahoma State and USC.
Federal prosecutors stunned college basketball by announcing charges for four Division I coaches. Although the charges stem from a three-year investigation, much is still to be determined. Here's what you need to know.
The SEC complaint said Blazer actually pitched the movie project to an athlete as an investment opportunity, but that client "expressly refused to make the investment." Blazer allegedly took $550,000 from the client's account and invested in the film projects. When the client later learned about Blazer's actions and demanded repayment, Blazer then took money out of a different athlete's account to make repayment in "Ponzi-like fashion."
On Aug. 4 of this year, the SEC ordered Blazer to make restitution of $1.8 million and pay a civil penalty of $150,000. The SEC had barred him from the industry in May 2016. As part of a plea agreement with the U.S. Attorney's office, he agreed to plead guilty to securities fraud, aggravated identity theft, false statements and documents, and two counts of wire fraud, according to a Sept. 19 cooperation agreement.
It wasn't the first time Blazer was investigated by financial regulators. According to the Pittsburgh Post-Gazette, an unidentified NFL player filed a complaint against Blazer in March 2011 with the Financial Industry Regulatory Authority, an industry-funded group that regulates financial advisers and the firms where they work.
The football player alleged he lost $4 million because Blazer misappropriated or mismanaged his accounts between 2001 and 2009. Blazer told FINRA investigators that the player was recklessly withdrawing money from his accounts, forcing his firm to sell other assets in order to generate cash. An arbitrator awarded the football player $850,000 in May 2012."
More:
The inside story of how the FBI rocked college basketball
