CORAL GABLES, FLA. (WSVN) - Ten people have been arrested by the FBI in connection to alleged fraud and corruption within NCAA men’s basketball,
which may have involved top-tier universities, and according to Business Insider, the University of Miami may be implicated in the continuing investigation.
Business Insider reports an FBI investigation accuses Jim Gatto, Adidas director of global sports marketing for basketball, of conspiring with coaches to pay high school athletes to play at Adidas-sponsored universities.
“The picture painted by the charges brought today is not a pretty one,” said Joon Kim, U.S. Attorney for the Southern District of New York, during a press conference, Tuesday.
Though UM was not mentioned in the court documents, the Miami Herald reports that one university is referenced anonymously, with a description that matches the Coral Gables private school. However, the FBI in Miami said no arrests have been made in the city related to the investigation.
The arrests stemmed from the FBI’s three-year investigation into college basketball, which officials said uncovered bribery, corruption and fraud.
UM President Julio Frenk confirmed the university’s potential ties to the investigation in a statement that read in part, “We have confirmed with the U.S. Attorney’s Office that, at this time, it is investigating a potential tie to one member of our coaching staff and a student recruit.”
“College coaches took cash bribes from managers and advisors in exchange for directing players and their families to those bribers,” said Kim.
According to ESPN, Louisville’s head coach Rick Pitinohas already felt the ramifications of the investigation. The university has fired him. Louisville has reported ties to the corruption case.
In one case, Gatto and other accused defendants allegedly agreed to make payments of up to $150,000 from Adidas to persuade an athlete to join an Adidas-sponsored university team and later sign with the shoe company once turning pro.
Gatto is accused of offering to pay the high school student to attend “a private research university located in Florida. With approximately 16,000 students and over 2,600 faculty members, it is one of the state’s largest universities. ‘University-7’ fields approximately 15 varsity sports teams in NCAA Division I competition, including men’s basketball.”
According to UM’s website, the school is described as “a private research university with more than 16,000 students from around the world, the University of Miami is a vibrant and diverse academic community focused on teaching and learning, the discovery of new knowledge, and service to the South Florida region and beyond.”
UM’s statement went on to say, “While we are alarmed and disappointed, we are steadfast in our belief that we must also act with the highest level of integrity and commitment to the pursuit of truth.”
“It definitely goes on everywhere, I feel, especially at the bigger schools,” said UM student Jerry Kourkoumelis. “And I feel like the NCAA turns a blind eye to it.”
“It’s sad to see, you know, kids – they’re 17, 18 – getting taken advantaged of. And how tempting is it, as a 17-year-old, saying, ‘Oh, well, I can pay for this,’ and your family, pay through college?” said UM student Michael Martinez. “It’s all the adults’ fault. I mean that’s just embarrassing. That 40, 50-year-old coaches would be willing to expose kids like that.”
The University of Miami provided a statement to the Miami Herald from athletic director Blake James, saying, “The University of Miami is aware of the indictments handed down today by the Department of Justice involving several men’s college basketball programs, coaches, financial advisors, agents and apparel executives. As we are just learning the details, we cannot comment on the actions taken today by federal authorities. However, if requested, we will cooperate in any legal or NCAA review of the matter.”
Head UM basketball coach Jim Larrañaga’s attorney Stuart Grossman also provided a short statement to the Miami Herald, saying, “Coach L is unfamiliar with this matter and had zero involvement in any allegations of any impropriety. He will continue to lead this great program.”
Business Insider reported that assistant coaches at Arizona, Auburn, USC and Oklahoma State were arrested, the Department of Justice announced Tuesday. Managers, Adidas representatives and financial advisers were also among the group arrested for allegedly conspiring with athletes and Adidas-sponsored universities.
Adidas officials said they are aware of the arrests and are learning more.
UM starts its basketball season this Friday.
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