Judge Rules Adidas RICO Suit Will Continue

On March 2, 2020, U.S. District Judge Joseph F. Anderson Jr. declined to dismiss a civil racketeering lawsuit against Adidas and others, allowing the lawsuit to continue. The suit was brought by Brian Bowen II, a former University of Louisville basketball recruit, who claims that the NCAA corruption scandal cost him opportunities in both college and professional basketball.

Specifically, Judge Anderson determined that Bowen would be permitted to continue claims under the Racketeer Influenced and Corrupt Organizations Act (RICO), a federal law that provides a …

February 24, 2020 Advertising / Concussions / Fraud / Litigation

False or Frivolous? The Court Will Decide Whether Concussion Testing Company’s Claims are Valid

ImPACT Applications, Inc. filed suit on October 29, 2019 against its competitor, Concussion Management, LLC f/k/a XLNTbrain, LLC in the U.S. District Court for the District of Maryland. In its complaint, ImPACT alleges that XLNTbrain falsely advertised its products and services in violation of the Lanham Act. In addition, ImPACT alleges that XLNTbrain engaged in unfair competition practices.

Both companies market concussion assessment and management testing products with companion software. While both companies sell similar products, there are some notable differences. For one, ImPACT is …

January 21, 2020 Celebrities / Fantasy Sports / Fraud / Gambling / NFL / Sports Betting / Sports Gambling / TV

DraftKings Comes Under Fire Following Collusion Scandal Involving “Bachelor” Stars

Two stars from “The Bachelor” are facing allegations that they colluded in a DraftKings contest to win $1 million, adding to the controversies that the daily fantasy sports industry is facing.

Jade Roper-Tolbert won $1 million in the DraftKings Millionaire Maker involving the NFL playoffs. She entered 150 lineups, which is the maximum number allowed for a single contestant. Tanner Tolbert, her husband who she met while filming “Bachelor in Paradise,” also entered the same contest with 150 entries. However, it is alleged that none …

January 16, 2020 Baseball / Bountygate / Defamation / Ethics / Fraud / Libel / Litigation / MLB

Signs and Signals and Trashcans, Oh My! Astros Cheating Scheme Exposed

Sports scandals are not a foreign concept to fans, players, coaches, owners, and the like. For example, on March 2, 2012, the NFL announced it had evidence of the New Orleans Saints’ “bounty system that gave cash rewards for knocking [opposing players] out of games” during the 2009-2011 NFL seasons. Somewhat similar, MLB is experiencing something that, while less dangerous, is just as detrimental to the integrity of the sport.

Baseball catchers use signs and signals to determine what type of pitch will be thrown …

January 15, 2020 Fraud / Golf

Going for the Green: Investors Seek Win in Second Circuit

In 2014, shareholders of the for-profit corporation Winged Foot Holding Company (WFHC) filed suit alleging the company had breached its fiduciary duty under New York Business Corporation Law Section 720 and unjustly enriched itself. This suit stems from the WFHC Directors’ 2013 extension of a 1947 lease agreement to use the golf club grounds. Under the lease agreement, the annual rental payment is $30,000.

In their complaint, filed with the U.S. District Court for the Southern District of New York, the shareholders alleged that WFHC’s …

January 2, 2020 Fraud / Insurance / NFL

Ten NFL Players Charged By DOJ with Health Care Fraud

The Department of Justice has indicted 10 former NFL players, including Washington Redskins running back Clinton Portis, on charges that they defrauded an NFL health care plan of over $3.4 million.

The DOJ filed two indictments on December 6 in Kentucky federal court that were unsealed on December 12. In these indictments, federal prosecutors alleged that this group of former NFL players made fraudulent claims to the Gene Upshaw NFL Health Reimbursement Account Plan. The players allegedly filed reimbursement claims on medical equipment that they …

December 16, 2019 Doping / Fraud / Olympics / Soccer

Russia Banned From 2020 and 2022 Olympics, 2022 World Cup for Doping Violations

Russia has been banned by the World Anti-Doping Agency (WADA) from participating in or hosting various sporting events, including the 2020 Olympics and 2022 World Cup.

As we reported earlier, the Russian track-and-field team was banned from the 2016 Summer Olympics by the International Association of Athletics Federations. This ban was a result of a systematic doping cover-up and the lack of compliance from the Russian Anti-Doping Agency (RUSADA). The Russian Olympic team was later banned from the 2018 Winter Olympics due to extensive doping …

September 30, 2019 Basketball / Fraud / NCAA

All in the Family: Father of NCAA Corruption Convict Allegedly Fired for Soliciting $25,000 from Student-Athlete

Cleveland State University (CSU) has fired Lou Dawkins, the father of aspiring sports agent and convicted NCAA bribery conspirator Christian Dawkins, from his assistant basketball coach position for soliciting $25,000 from a student-athlete.

As we previously reported, Christian Dawkins and Adidas consultant, Merl Code, were convicted by a federal jury in October 2018 on fraud charges. Then, in May 2019, Dawkins and Code were convicted by another federal jury on conspiracy to bribe assistant college basketball coaches.

Dawkins is currently arguing for leniency in …

September 27, 2019 Contract / Fraud / Gambling / Litigation / Sports Betting

$29.5 Million Sports Betting Scheme Unraveled by SEC

On August 30, 2019, the Securities and Exchange Commission (SEC) filed a complaint in the U.S. District Court of Nevada against John Thomas, 74, and Thomas Becker, 72. The SEC alleges Thomas and Becker ran a fraudulent $29.5 million sports betting investment scheme. The two men raised the funds from 600 investors across 40 states by “offering investors pooled investment contracts whereby [the investors] obtain the opportunity to share in the purported profits” from Thomas’ and Becker’s “proprietary sports betting system.”

Thomas and Becker communicated …

September 19, 2019 Basketball / Fraud / Litigation / NCAA

Key Witness in NCAA Corruption Trial Avoids Prison Time

Munish Sood, a crucial witness in the NCAA corruption cases, will avoid both prison time and probation, a federal judge ruled.

Sood, a New Jersey financial adviser, admitted to paying bribes to a variety of people involved in college athletics. Included are two former assistant coaches: Lamont Evans, of the University of South Carolina, and Emanuel “Book” Richardson, of the University of Arizona, who each pled guilty and faced three months of prison time.

Government counsel requested leniency at Sood’s hearing, with attorney Noah …