James Gatto, Adidas Executive, Defrauding Universities, New York 2019
Grimy Times: Adidas Executive, Two Others Convicted of Defrauding Universities in College Basketball Scandal
A former Adidas executive and two associates have been convicted of defrauding universities in a college basketball scandal, prosecutors announced.
JAMES GATTO, a/k/a “Jim,” MERL CODE, and CHRISTIAN DAWKINS were found guilty of conspiring to defraud universities by funneling illicit payments to the families of high-school and college basketball players and concealing those payments from the schools.
The scheme involved Gatto, Code, and Dawkins brokering and facilitating payments funded by Adidas to the families of high school and college-aged basketball players in connection with decisions by those players to commit to Adidas-sponsored schools.
The payments, which the defendants took great lengths to conceal from the victim-universities, served to defraud the relevant universities in several ways, including rendering student-athletes ineligible to participate in collegiate athletics and depriving universities of significant information regarding NCAA rule non-compliance.
The convicted defendants will be sentenced on March 5, 2019, at 10:00 a.m. by Judge Kaplan, who presided over the four-week trial.
Two other scheme participants, MUNISH SOOD, a financial advisor, and THOMAS “T.J.” GASSNOLA, a former Adidas consultant, previously pled guilty in connection with their participation in the fraudulent scheme.
“Today’s convictions expose an underground culture of illicit payments, deception and corruption in world of college basketball,” said Robert S. Khuzami, the Attorney for the United States.
The convictions are a significant blow to the corrupt practices that have plagued college basketball for years.
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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