re: ELI5: why is the FBI going after the NCAA?

quote:

---

their charges are based in:

Conspiracy to defraud the US

Theft or bribery concerning programs receiving Federal funds

Wire Fraud

and various conspiracy-based theories

PDF of the complaint

---

Isn’t enticing an athlete with a scholarship a bribe as well?

It's kind of like how the whole Clinton e-mail issue was dead... then the FBI was snooping on Anthony Weiner's computer looking for his kiddie porn and oh crap, there's a bunch of e-mails...

When Blazer started singing to try to get a lesser sentence for his SEC (securities and exchange commission) problems... he offered this up and the FBI said sure, let's run with this.

I think it's been well known that there is corruption between AAU teams, the shoe companies, and the schools. Hell... anyone remember Blue Chips? This has been going on for a long time.

The NCAA can't figure it out because they don't have jurisdiction and subpoena power over a lot of the players. The feds do.

quote:

---

and various conspiracy-based theories

PDF of the complaint

---

I just skimmed through the first 10 pages, and I gotta tel you that those charges are way less than legally airtight. I might even call them shaky. Most of them require fraud as an element.

Here is how fraud works (if person A is going to defraud person b)
- person A misrepresents a material fact to person B
- person B, acting in reasonable reliance on this misrepresenation, transfers property to person A

Easy example:
- Patrick Plaintiff brings his car in for inspection.
- Daniel Defendant, the owner of the store and head mechanic, tells Patrick that his flux capacitor is shot, and that in order to pass the inspection, he'd need to get it replaced, which will cost $1,500 in parts and labor. This is a complete lie, though, as there is no such thing as a flux capacitor, and even if there were, it was running tip top.
- Patrick agrees to the flux capacitor replacement.

So, here we have a material misrepresentation by Daniel, which is done with the intent to defraud. We have Patrick, in reliance on that misrepresentation, paying Daniel $1,500.

In the case at hand, what is the misrepresentation? Who is making it? Who is relying on it to their detriment?

Now, to be clear, I skimmed through very quickly and it was only the first ten pages. But my first impressions from what I saw is that it is somewhat legally shaky.

quote:

---

The federal government gets pissed when they don't get their cut

---

And what is crazy is that the money had already been taxed. Unless it has come in offshore, any money circulating in the U.S. has been taxed to hell and back multiple times

quote:

---

In the case at hand, what is the misrepresentation? Who is making it? Who is relying on it to their detriment?

---

The federal government is being lied to and in turn, they are giving Pell Grants to people with inaccurate financial profiles, while effectively preventing other people from getting those grants.

That's one way of looking at it.

And any representative of a school that uses federal financial aid could be charged with this.

I'm still not sure what specific laws were broken. It's not illegal to break the bylaws of the NCAA. If it falls under conspiracy to defraud the U.S would coaches at private schools be immune to prosecution?

From your second link

quote:

---

being an agent of an organization, or of a State, local, or Indian tribal government, or any agency thereof

---

How are any of the coaches an agent of anything listed?

From the third

quote:

---

Whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, transmits or causes to be transmitted by means of wire, radio, or television communication in interstate or foreign commerce, any writings, signs, signals, pictures, or sounds for the purpose of executing such scheme or artifice, shall be fined under this title or imprisoned not more than 20 years, or both.

---

Hey if we give you this money you can come play basketball at our school and we will keep you eligible. Then school does that. This person also tells shoe companies we will sway him to sign with you after he leaves. Where is the fraud in this case?

No one paid money for a fake real estate deal that never happened or received money promising an investment purchase that was actually a ponzi scheme. Who was the victim of fraud here? Players were paid for a service. Coaches were paid for a service. Both were provided. That's normally referred to as a salary.

Tax revenue wasn't paid.

quote:

---

Who was the victim of fraud here? Players were paid for a service. Coaches were paid for a service. Both were provided. That's normally referred to as a salary.

---

The victim is the US Treasury. At a minimum, do you think that salary was filed as such? Do you think FICA and federal/state income taxes were paid?

quote:

---

Zero results found for all

---

I'm telling you... right now the Feds are trying to get everyone to crap their pants. Down the road, some of these charges will be dropped and tax evasion charges will be added. Book it.