KU wants $1 million in restitution from convicted men in college basketball corruption trial

photo by: Associated Press

From left, former Adidas executive James Gatto, former sports agent Christian Dawkins and former amateur basketball league director Merl Code arrive at federal court in New York in these photos from October 2018.

The University of Kansas wants the three men convicted of fraud in the college basketball corruption trial to pay more than $1 million worth of restitution to the university, according to a document filed in the U.S. District Court for the Southern District of New York on Tuesday.

William M. Sullivan, an attorney representing KU, said in a letter to the court that the university wanted restitution from former Adidas executive James Gatto, business manager Christian Dawkins and amateur league director Merl Code to cover the cost of legal fees and two athletic scholarships the university gave to athletes who were actually ineligible to play because of the men’s action.

“The damage done by Mr. Gatto’s and his co-conspirators’ greed cannot be overstated,” Sullivan wrote in the letter. “Their actions have impaired the University of Kansas’s ability to continue to fully use those resources for both the benefit and welfare of its student-athletes, as well as for its ongoing mission of educational and community development and enrichment.”

The two athletic scholarships referenced in the restitution request were given to former KU player Billy Preston and current player Silvio De Sousa, according to the court filing. Preston never played in an official game during his one season with KU because of doubt surrounding his eligibility. De Sousa, however, played for the team during its run to the Final Four in 2018 and the NCAA recently ruled him ineligible to play for KU until the 2020-2021 season.

KU’s total requested restitution is $1,136,424. Similar letters of restitution requests from attorneys for the University of Louisville and North Carolina State University were also filed but involved less money. Louisville only requested restitution of about $31,000, and NC State requested about $258,000.

In October, a jury found Gatto, Dawkins and Code all guilty of fraud for the scheme.

The trial centered on whether the men’s admitted effort to channel secret payments to the families of top recruits, luring them to major basketball programs sponsored by Adidas, including KU, was criminal. At stake was a fortune in revenue for the basketball programs and potential endorsement deals for the players if they went pro, both the prosecutors and defense have contended.

Earlier this month, the three men filed court documents asking for probation rather than prison time for their convictions.

But prosecutors filed documents on Tuesday arguing that the men deserve jail time for their convictions because of the seriousness of the offenses and to deter future illegal actions by others. Along with their argument, the prosecutors included the letters from the university lawyers requesting restitution.

The three men are scheduled to be sentenced on Tuesday.

During the trial, testimony focused on KU coach Bill Self’s relationship with government witness T.J. Gassnola. The former Adidas consultant testified that he paid the families of players to steer them to KU, including $90,000 to the mother of Preston and $2,500 to the guardian of De Sousa. Gassnola testified that he never told Self about the payments. Gassnola is awaiting sentencing in a separate but related federal case.

The defense in the case argued that the coaches, including Self and KU assistant coach Kurtis Townsend, were aware of the payments to players. Despite the argument, the jury found all three men guilty of defrauding universities, including KU, by providing money to players’ families to steer them toward certain programs.

The restitution requested by KU covers:

• $112,731 for two athletic scholarships and financial aid the university provided to De Sousa and Preston.

• $346,393 for legal fees the university paid in response to the NCAA investigating De Sousa and Preston.

• $308,472 for fees the university incurred to cooperate with the federal investigation of the Gatto, Code and Dawkins crimes.

• $289,886 for professional service fees the university incurred to respond to federal subpoenas related to the men’s crimes.

• $78,942 for fees the university incurred to prepare Jeff Smith, KU Athletics senior director of compliance, as a witness to testify and to have an attorney present during the trial.

Contact Dylan Lysen

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More coverage: KU and the college basketball scandal

Feb. 27, 2019 — Report: NCAA seeking more FBI information in college basketball corruption scandal for its own investigation

Feb. 16, 2019 — To avoid sanctions, KU basketball may need to convince NCAA Gassnola is not a booster

Feb. 14, 2019 — Gatto, others in NCAA basketball scandal seek probation; they argue scheme was designed to help KU, other universities

Feb. 2, 2019 — NCAA’s De Sousa ruling raises new questions about whether KU coaches committed violations

Jan. 18, 2019 — KU claims it has $1.5 million in new Adidas money, but when asked to point to it on financial statements, it won’t

Dec. 14, 2018 — KU struggling to explain why it went into ‘stand-down’ mode in investigating basketball recruiting allegations

Dec. 5, 2018 — Report: NCAA won’t punish programs caught in Adidas fraud trial until after 2019 Final Four

Nov. 19, 2018 — New Adidas lawsuit emerges as KU reviews its options with apparel company; civil suit alleges KU coaches knew of payments

Nov. 16, 2018 — A month after KU coach caught on wiretapped phone call discussing recruit and money, chancellor has not talked to coach

Nov. 8, 2018 — Board of Regents member wants KU explanation on issues related to college basketball corruption case

Nov. 7, 2018 — Report: FBI gives NCAA clearance to begin investigating some basketball programs in corruption scandal

Nov. 1, 2018 — Wiretapped phone call of KU coach may become part of NCAA inquiry; AD confirms NCAA hasn’t started on De Sousa review

Oct. 30, 2018 — KU now refuses to share info with public on $1.5M in Adidas payments; last week it said lack of personnel was reason for delay

Oct. 24, 2018 — KU says it’s evaluating options on Adidas contract, doesn’t answer whether it will conduct independent investigation of recruiting practices

Oct. 24, 2018 — KU cites lack of personnel for delay in providing records related to unexplained $1.5M in Adidas payments

Oct. 19, 2018 — Devoted KU basketball fans stand by their team; psychologists not at all surprised

Oct. 18, 2018 — Chancellor won’t say whether he still has ‘complete confidence’ that KU follows recruiting rules

Oct. 17, 2018 — As college basketball corruption trial comes to a close, KU could be facing several NCAA code violations

Oct. 12, 2018 — As allegations mount, KU mum about Adidas ties and extra $1.5M it has received from the company

Oct. 3, 2018 — KU’s De Sousa could be ruled ineligible, NCAA rules experts say; chances of vacating Final Four appearance less clear

Oct. 1, 2018 — Girod, other KU leaders listed as potential witnesses in college basketball corruption trial

July 24, 2018 — KU releases federal subpoenas in college basketball investigation

July 11, 2018 — KU coach Bill Self, new AD Jeff Long discussed ongoing FBI investigation during interview process

July 10, 2018 — KU acknowledges having received federal subpoena in ongoing FBI investigation into college basketball

July 6, 2018 — Report: Feds seeking more information regarding KU forward Silvio De Sousa

April 27, 2018 — Reports: AAU director linked to NCAA bribery case, KU families pleads guilty

April 23, 2018 — KU didn’t produce written report of recent examination of athletic department; chancellor saw no need for external report

April 13, 2018 — Former prosecutor: KU not in clear yet, but one past case provides hope

April 13, 2018 — Chancellor sees no need for independent investigation of KU Athletics in wake of indictment

April 10, 2018 — Employee of apparel company illegally paid 2 KU basketball players’ guardians, federal indictment alleges

Feb. 23, 2018 — Kansas linked to college basketball scandal in Yahoo Sports report

Nov. 28, 2017 — Multimillion-dollar KU-Adidas deal remains unsigned as investigation into Adidas executive continues

Oct. 20, 2017 — KU provides more details of NCAA-mandated basketball review, enlists law firm to help

Oct. 17, 2017 — Analysis: Understanding the legal case building against the college basketball world

Oct. 16, 2017 — Zenger: KU will comply with NCAA requirement of all schools to review basketball program

Sept. 26, 2017 — NCAA basketball coaches, Adidas executive among 10 charged in bribe scheme

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