Former Clemson player Merl Code Jr. charged in federal fraud case

The FBI investigation into NCAA basketball corruption alleges that an Adidas executive conspired to pay $100,000 to the family of a top-ranked national recruit to play at Louisville and to represent Adidas when he turned pro.

In addition to Person, who is an associate head coach at Auburn University, the arrested coaches include Lamont Evans, an assistant coach at Oklahoma State University; Emanuel "Book" Richardson, an assistant coach at the University of Arizona; and assistant coach Tony Bland of the University of Southern California.

James Gatto, an Adidas marketing executive, is being charged in relation to allegedly bribing high school basketball players to attend Adidas-sponsored schools and then sign with Adidas upon turning professional.

In a statement Adidas wrote: "Today, we became aware that federal investigators arrested an Adidas employee", wrote a company spokesperson. But I think the point that was made by the Federal Bureau of Investigation agent was more like, don't do this stuff because we'll catch you.

Miami said it will cooperate with authorities, while USC said it appointed former FBI Director Louis J. Freeh to conduct an internal investigation.

Person is alleged to have accepted $91,500 in bribes over 10 months and gave $18,500 of that money to two student-athletes, according to Michael Niziolek of Auburn247.

Shares of Adidas (ADDYY - Free Report) tumbled on Tuesday after US federal authorities brought charges against a company executive in connection with a larger NCAA college basketball fraud and corruption case. According to the complaint, the coaches facilitated and received bribes from athlete advisers, including business managers and financial advisers Christian Dawkins and Munish Sood, over multiple instances, in exchange for directing and pressuring players and their families to retain the services of these advisers.

Before the rule's implementation, the best high school basketball players in each class had the option of simply entering the N.B.A. and receiving a salary, as well as lucrative endorsement deals, and above all not needing to worry themselves over N.C.A.A. rules.

Adidas' PR team is scrambling in the wake of what could be one of the largest scandals in college sports history.

Steelers LT Alejandro Villanueva donates his profits from jersey sales
Villanueva said that he just wanted to watch the national anthem while his teammates stayed in the tunnel. Villanueva said there was a botched plan.

Pitino's exit comes after the school acknowledged on Tuesday that the men's program is part of a federal investigation into alleged bribery of recruits.

College basketball is facing a major scandal involving several schools and a major manufacturer of sports apparel.

"For these men, bribing coaches was a business investment", said prosecutor Kim.

"These coaches abused that trust placed in them by the players and their families".

An Auburn ticket office representative said "full refunds" are available to season ticket holders if they request.

"You guys are being introduced to ... how stuff happens with kids and getting into particular schools", one defendant, Adidas-affiliated Merl Code, said, according to the agent.

No students were identified in court papers by name.

Federal prosecutors have announced charges of fraud and corruption in college basketball, including against four coaches.

Latest News