I N D I C T M E N T

Table of Contents

COUNT ONE

     Background

          A.  The National Collegiate Athletic Association (NCAA)

          B.  The Universities

         C.  The Children's Mercy Hospital 76'ers

    The Scheme and Artifice to Defraud

    Purpose of the Scheme and Artifice to Defraud

    The Violation

    Overt Acts

        A.  Payments to High School Basketball Players

                    1.  Korleone Young

                   Jaron Rush   

3 Corey Maggette

                    4 Kareem Rush

                    5 Andre Williams

        B.  Payments from Thomas W. Grant

        C. Payments from Nike

        D.   Payments from Sports Agents

       E.  Mailings, Wire Transfers, and Interstate Telephone Calls

COUNT TWO

COUNT THREE

COUNT FOUR

COUNT FIVE

COUNT SIX

COUNT SEVEN

COUNT EIGHT

COUNT NINE

COUNT TEN

        The Scheme and Artifice to Defraud

        The Violation

COUNT ELEVEN

        The Violation


Filed April 12, 2000
P.L. Brune, Clk
U.S. District Court
West District
Of Missouri

 

IN THE UNITED STATES DISTRICT COURT FOR THE
WESTERN DISTRICT OF MISSOURI
WESTERN DIVISION

UNITED STATES OF AMERICA,

                               Plaintiff,

 

                   v.

 

MYRON C. PIGGIE
[dob:  03/07/61]

 

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No. 00-00162-01-CRW

 

COUNT ONE:
18 U.S.C. 371
NMT 5 Years Imprisonment
NMT $250,000 Fine
Class D Felony
NMT 3 Years Supervised Release

COUNTS TWO THROUGH FOUR:
18 U.S.C. 1341 AND 2
NMT 5 Years Imprisonment
NMT $250,000 Fine
Class D Felony
NMT 3 Years Supervised Release

COUNT FIVE
18 U.S.C. 1343
NMT 5 Years Imprisonment
NMT $250,000 Fine
Class D Felony
NMT 3 Years Supervised Release

COUNTS SIX THROUGH NINE:
26 U.S.C. 7203
NMT 1 Year Imprisonment
NMT $100,000 Fine
Class A Misdemeanor
NMT 1 Year Supervised Release

COUNTS TEN AND ELEVEN:
18 U.S., c 2134
NMT 10 Years Imprisonment
NMT $250,000 Fine
Class C Felony
NMT 3 Years Supervised Release

$100 Mandatory Special Assessment
(Each Count)

I N D I C T M E N T

THE GRAND JURY CHARGES THAT:

COUNT ONE

Background

        At all times material to this Indictment:

        A.  The National Collegiate Athletic Association (NCAA)

        1.  The NCAA is an organization comprised of colleges and universities established to promote intercollegiate athletics programs for student-athletes. As part of its policy, the NCAA has adopted eligibility rules to comply with satisfactory standards of amateurism.  Consequently, it is central to the mission of the NCAA and its member colleges and universities that student-athletes shall be amateurs in an intercollegiate sport.

        2.  Pursuant to the rules and regulations of the NCAA an individual will forfeit amateur status and become ineligible for intercollegiate competition in a particular sport if the individual uses his athletics skill directly or indirectly for pay in any form in that in that sport.   Moreover, preferential treatment or benefits rendered based on the athletic skill of an individual is equally prohibited.  The NCAA also provides that an individual shall be ineligible for participation in an intercollegiate sport if he has ever agreed orally or in writing to be represented by an agent for the purpose of marketing his or her athletic ability in that sport.

        3.  Pursuant to the policy of the NCAA and its member schools the control and responsibility for the conduct of intercollegiate athletics shall be exercised by the institution itself and its conference.   Therefore, it is the obligation of the institution to withhold from all intercollegiate competition any student-athlete who is ineligible on the basis of a violation of amateur status.  Additionally, the NCAA has established further penalties for violations of amateur status including forfeiture of contests in which the ineligible student-athlete participated and forfeiture of the institution's share of NCAA basketball tournament revenue.

        4.  In order to ensure compliance with the rules and regulations concerning eligibility to compete in intercollegiate athletics, the NCAA and its member schools require that each student-athlete annually sign a Student-Athlete Statement certifying amateur status.   In signing this statement, the student-athlete affirms that he has never taken pay for competing in that sport nor has he used his athletic skill for pay in any form in that sport.

        5.  Financial assistance in the form of scholarships or educational grants-in-aid covering the actual cost of tuition, room and board, required institutional fees, and books are sanctioned by the NCAA and its member institutions for student-athletes who maintain their amateur status.   However, this financial assistance is subject to termination if the recipient renders himself ineligible for intercollegiate competition by violating the rules and regulations concerning amateur status or by fraudulently misrepresenting any information on the Student-Athlete Statement.

B.  The Universities

        6.   The University of California at Los Angeles (UCLA) was a state-supported institution located in Los Angeles, California, and was a member school of the NCAA and the Pacific Ten Conference.   Pursuant to the rules and regulations of these associations, the number of mens' basketball scholarships that could be awarded by UCLA was limited to thirteen (13) for the academic years 1998-99 and 1999-00.  During 1998, UCLA granted Jaron Rush an athletic scholarship which covered his tuition, room, board, books and fees for the 1998-99 academic year in the amount of $22,048.44.  Additionally, during 1999 UCLA awarded Rush an athletic scholarship which covered his tuition, room, board, books and fees for the 1999-00 academic year in the amount of $22,814.44.

       7.  Duke University was an independent institution located at Durham, North Carolina, and was a member school of the NCAA and the Atlantic Coast Conference.  Pursuant to the rules and regulations of these associations, the number of men's basketball scholarships that could be awarded by Duke University was limited to thirteen (13) for the academic years 1998-99 and 1999-00.   During 1998, Duke granted Corey Maggette an athletic scholarship which covered his tuition, room, board, books and fees for the 1998-99 academic year in the amount of $32,696.

        8. The University of Missouri was a state-supported institution located in Columbia, Missouri, and was a member school of the NCAA and the Big Twelve Conference.  Pursuant to the rules and regulations of these associations, the number of mens' basketball scholarships that could be awarded by University of Missouri was limited to thirteen (13) for the academic year 1999-00.   During  1999, the University of Missouri granted Kareem Rush an athletic scholarship which covered his tuition, room, board, books and fees for the 1999-00 academic year in the amount of $9,388.92. 

        9.   Oklahoma State University was a state-supported institution located in Stillwater, Oklahoma and was a member school of the NCAA and the Big Twelve conference. Pursuant to the rules and regulations of these associations, the number of mens' basketball scholarships that could be awarded by Oklahoma State University was limited to thirteen (13) for the academic year 1999-00.  During 1999, Oklahoma State University granted Andre Williams  an athletic scholarship which covered his tuition, room, board, books and fees for the 1999-00 academic year in the amount of $12,180.

C. The Children's Mercy Hospital 76'ers

        10.  The Children's Mercy Hospital 76'ers (CMH 76'ers) was a summer league basketball team established in Kansas City, Missouri in 1988, and funded by Thomas W. Grant.  Specifically, the CMH 76'ers annually participated in various summer league and Amateur Athletic Association (AAU) tournaments for boys ages 11-18 throughout the United States.  Funding for this team was supplied by Grant who paid all necessary expenses including uniforms, equipment, airfare, lodging, ground transportation and meals for out-of-town tournaments.

        11.  Myron Piggie became the coach of the CMH 76'ers during the summer of 1995 and subsequently accumulated exceptional high school and eventual NCAA Division I basketball players including Jaron Rush, Corey Maggette, Korleone Young, Kareem Rush, Andre Williams, Ajou Deng, Ladarius Halton, Ryan Humphrey, Earl Watson, Mike Miller, Josh Kroenke, Kevin Braswell, Brent Nelson and Justin Gage.  Thereafter, defendant remained the coach of the CMH 76'ers until the summer of 1998 when he became sponsor of the team and changed the name to the Kansas City Rebels.

The Scheme and Artifice to Defraud

        12.  It was a part of the scheme that defendant assembled and made payments to elite high school basketball players for their participation in summer league and AAU tournaments for the CMH 76'ers with the stated intention that these players compensate defendant after they signed professional and endorsement contracts.  As part of this scheme, defendant utilized these players to gain access to Nike for his financial benefit.  Thereafter, it was a part of this scheme that defendant utilized these elite players and Nike to gain access to various sports agents for his financial benefit.  Consequently, defendant received payments from Thomas Grant, Nike, and agents as a result of accumulating these players.   Specifically, defendant received approximately  $184,435 from Grant, a $425,000 consulting and travel team contract and approximately $159,866 worth of property and money from Nike, and approximately $76,100 from sports agents for a total of $420,401 as a result of his association with the CMH 76'ers between 1995-98.

        13.  It was further a part of the scheme that defendant made payments of approximately $17,000 to Jaron Rush between August 1996 and March 1998 for his participation with the CMH 76'ers in various summer league and AAU basketball tournaments in violation of NCAA rules and regulations.

        14.  It was further a part of the scheme that defendant made payments of approximately $14,000 to Korleone Young between April 1996 and June 1998 for his participation with the CMH 76'ers in various summer league and AAU basketball tournaments.

        15.  It was further a part of the scheme that defendant made payments of approximately $2,000 to Corey Maggette between April and August 1997 for his participation with the CMH 76'ers in various summer league and AAU basketball tournaments in violation of NCAA rules and regulations.

         16.  It was further a part of the scheme that defendant made payments of approximately $2,300 to Kareem Rush between April 1997 and July 1998 for his participation with the CMH 76'ers and the Kansas City Rebels in various summer league and AAU basketball tournaments in violation of NCAA rules and regulations.

        17.  It was further a part of the scheme that defendant made payments of approximately $250 to Andre Williams between April and June 1998 for his participation with the Kansas City Rebels in various summer league and AAU basketball tournaments in violation of NCAA rules and regulations.

        18.  It was further a part of the scheme that defendant accorded preferential treatment to Young, Jaron Rush, and Maggette as opposed to the remainder of the team.  Specifically, defendant provided these players with extra tennis shoes and clothing, and took them to more expensive restaurants for dinner than their teammates during out-of-town tournaments.

        19.  It was further a part of the scheme that payments to the basketball players were made in cash and at various times packaged in Nike shoe boxes.  Moreover, these payments were made secretly to the players who were told by defendant to keep the payments confidential.   Additionally, it was a part of the scheme that defendant developed cover stories for the players to explain the payments in the event the NCAA learned of their existence.

        20.  It was further a part of the scheme that Jaron Rush signed a National Letter of Intent on April 8, 1998, to attend UCLA and thereafter submitted a false and fraudulent Student-Athlete Statement to UCLA on October 7, 1998, and on October 7, 1999, certifying that he previously had not received payments to participate in basketball.

        21.  It was further a part of the scheme  that Corey Maggette signed a National Letter of Intent on November 12, 1997, to attend Duke University and thereafter submitted a false and fraudulent Student-Athlete Statement to Duke University on October 27, 1998, certifying that he previously had not received payments to participate in basketball.

        22.  It was further a part of the scheme  that Kareem Rush signed a National Letter of Intent on April 23, 1999, to attend the University of Missouri and thereafter submitted a false and fraudulent Student-Athlete Statement to the University of Missouri on September 23, 1999, certifying that he previously had not received payments to participate in basketball.

        23.  It was further a part of the scheme  that Andre Williams signed a National Letter of Intent on November 12, 1998, to attend Oklahoma State University and thereafter submitted a false and fraudulent Student-Athlete Statement to Oklahoma State University on October 6, 1998, certifying that he previously had not received payments to participate in basketball.

Purpose of the Scheme and Artifice to Defraud

        24.  It was the purpose of this scheme to deprive UCLA, the Pacific Ten Conference, and the NCAA of their intangible right to the honest services of Jaron Rush for the academic years 1998-99 and 1999-00; and to deprive Duke University, the Atlantic Coast Conference, and the NCAA of their intangible right to the honest services of Corey Maggette for the academic year 1998-99; and to deprive the University of Missouri, the Big Twelve Conference, and the NCAA of their intangible right to the honest services of Kareem Rush for the academic year 1999-00; and to deprive Oklahoma State University, the Big Twelve Conference, and the NCAA of their intangible right to the honest services of Andre Williams for the academic year 1999-00.

        25.  It was further the purpose of this scheme to fraudulently obtain money and property from UCLA in the form of tuition, room, board, fees, and books provided in an athletic scholarship for the benefit of Jaron Rush for the academic year of  1998-99 in the amount of $22,048.44, and for the academic year of 1999-00 in the amount of $22,814.44;  and to fraudulently obtain money and property from Duke University in the form of tuition, room, board, fees, and books provided in an athletic scholarship for the benefit of Corey Maggette for the academic year of 1998-99 in the amount of $32,696; and to fraudulently obtain money and property from the University of Missouri in the form of tuition, room, board, fees, and books provided in an athletic scholarship for the benefit of Kareem Rush for the academic year of 1999-090 in the amount of $9,388.92; and to fraudulently obtain money and property from Oklahoma State University in the form of tuition, room, board, fees, and books provided in an athletic scholarship for the benefit of Andre Williams for the academic year of 1999-00 in the amount of $12,180.

        26. It was further the purpose of this scheme to defraud UCLA of property, including its right to control the allocation of the limited number of athletic scholarships available to eligible student-athletes for the academic years 1998-99 and 1999-00; and to defraud Duke University of property, including its right to control the allocation of the limited number of athletic scholarships available to eligible student-athletes for the academic year 1998-99;  and to defraud the University Missouri of property, including its right to control the allocation of the limited number of athletic scholarships available to eligible student -athletes for the academic year 1999-00; and to defraud Oklahoma State University of property, including its right to control the allocation of the limited number of athletic scholarships available to eligible student-athletes for the academic year 1999-00.

        27.  As a result of this scheme, UCLA suspended Jaron Rush during the 1999-00 academic year in part for receiving payments from defendant to participate in various summer league and AAU basketball tournaments in violation of NCAA rules and regulations.  Consequently, UCLA lost the full benefit of its student-athlete and athletic scholarship for this period and incurred investigative costs.  Moreover, UCLA could potentially forfeit its share of the 1999 NCAA basketball tournament revenue for its use of Rush as an ineligible player.

         28.  As a result of this scheme, Duke University could potentially forfeit its share of the second place 1999 NCAA basketball tournament revenue and incur potential investigative costs for its use of Corey Maggette as an ineligible player.  Specifically, Maggette was rendered ineligible as a result of the payments from defendant to participate in various summer league and AAU basketball tournaments in violation of NCAA rules and regulations.

        29.  As a result of this scheme, the University of Missouri suspended Kareem Rush during the 1999-00 academic year for receiving payments from defendant to participate in various summer league and AAU basketball tournaments.  Consequently, the University of Missouri lost the full benefit of its student-athlete and athletic scholarship for this period and incurred investigative costs.

        30.  As a result of this scheme, Oklahoma State University suspended Andre Williams during the 1999-00 academic year for receiving payments from defendant to participate in various summer league and AAU basketball tournaments in violation of NCAA rules and regulations.  Consequently, Oklahoma State lost the full value of its student-athlete and athletic scholarship and incurred investigative costs.

The Violation

        31    Beginning on or about April 4, 1996, and continuing through on or about October 7, 1999, both dates being approximate, in the Western District of Missouri and elsewhere, MYRON C PIGGIE, defendant herein, did knowingly and intentionally combine, conspire, confederate, and agree with others both known and unknown to the grand jury, to commit offenses against the United States, that is to devise a scheme and artifice to defraud by means of false and fraudulent pretenses, representations and promises, the University of California at Los Angeles (UCLA), Duke University, the University of Missouri, Oklahoma State University, the Pacific Ten Conference, the Atlantic Coast Conference, the Big Twelve Conference, and the NCAA.

        The object of the scheme was to obtain money and property and to deprive the universities, conferences and the NCAA of their intangible right to the honest services of their student-athletes.

        As part of executing this scheme and artifice to defraud, the defendant used and caused to be used the United States Postal Service to send, deliver, and receive various matters or things, in violation of Title 18, United States Code, Section 1341, and transmitted and caused to be transmitted in interstate communication certain signs, signals, and sounds, in violation of Title 18, United States Code, Section 1343.

Overt Acts

        32.  In furtherance of the conspiracy and in order to effect its objects, the following overt acts were committed in the Western District of Missouri and elsewhere:

            A.  Payments to High School Basketball Players

                    1.  Korleone Young

        33.  Beginning on or about April 4, 1996, defendant initiated a scheme to make payments to Korleone Young for participating in summer league basketball tournaments for the CMH 76'ers.   Consequently, defendant compensated Young for participating in the following summer league basketball tournaments during 1996:

            a.   The Boo Williams Invitational in Hampton, Virginia on April 5-7

            b. the Spiece Run 'N Slam All-Star Classic in Lafayette, Indiana on April 26-28;

            c.   the Notre Dame Invitational at South Bend, Indiana on May 10-12;

            d.   the St. Louis Invitational on May 17-19;

            e.   the Dallas, Texas tournament on June 7-9;

            f.   the Kansas City Shootout in Kansas City, Missouri on June 14-16;

            g.   the D.C. Pro-Am Summer Slam Classic tournament in Washington, D.C. on June 28-30

            h.   the Nike All-American Camp in Indianapolis, Indiana on July 7-11; and

            i.   John Farrell's Nike/Las Vegas Invitational tournament on July 16-23.

        34. Specifically, defendant paid Young between $200-$500 to participate in each of the above tournaments in 1996.

a.  Additionally, defendant made a $750 payment to Young following the Nike/Las Vegas Invitational when Young sustained a broken foot.

b.  Consequently, during 1996, defendant paid Young approximately $4,000 for his participation in summer league basketball tournaments and to ensure that Young remain loyal and employ and compensate defendant after Young received a professional contract.

c. Thereafter, defendant continually told Young between 1996-97 that he looked out for him and that he expected Young to look out for defendant after Young signed a professional contract.

        35.  Subsequently, defendant compensated Young for participating in the following summer league basketball tournaments during 1997:

a. the Boo Williams Invitational in Hampton, Virginia on April 4-6

b. the Spiece Run 'N Slam All-Star Classic at Purdue University in Lafayette, Indiana on May 2-4;

c. the Reebok/Bob Gibbons Tournament of Champions at Durham, Chapel Hill, and Raleigh, North Carolina on May 23-25;

d. the CMH 76'ers Invitational in Lawrence, Kansas on June 20-22;

e. the Atlanta AAU Basketball Classic in Atlanta, Georgia on June 25-29;

f.  the Nike "Peach Jam" Invitational in Augusta, Georgia on July 14-17;

g. the Nike Supershowcase in Kissimmee, Florida on July 18-20;

h.  the Slam N Jam NIT in Long Beach, California on July 20-24; and

i. the Michael Jordan Flight School at Santa Barbara, California on August 5-11.

        36.  Specifically, defendant again compensated Young between $200-$500 for his participation in each of the above tournaments in 1997 and made several payments for special occasions in 1997-98.

a. Moreover, defendant paid Young $2,500 after the CMH 76'ers defeated New York Riverside in the championship game of the CMH 76'ers Invitational in Lawrence, Kansas, on June 22, 1997.

b.  Consequently, during 1997-98, defendant paid Young approximately $10,000 for his participation in summer league basketball tournaments for the CMH 76'ers for a total payment of approximately $14,000 for the period 1996-1998.

(2) Jaron Rush

        37.  Beginning on or about August 1996 defendant initiated a scheme to make payments to Jaron Rush for participating in summer league basketball tournaments for the CMH 76'ers.

a. Specifically, defendant made weekly $100 payments in late August 1996 through December 1996.

b. Additionally, defendant paid Rush between $100-$150 to participate in the Charlie Weber Invitational in College Park, Maryland on September 20-22.

c. Thereafter, during 1996 defendant also made several payments to Rush for special occasions including approximately $300 for homecoming at Pembroke Hill High School, approximately $200 at Halloween, approximately $150 for a weekend at Kansas University in Lawrence, Kansas, and approximately $300 for Christmas.

        38.  These payments were made by defendant as compensation for participating in summer league basketball tournaments and to ensure that Rush remain loyal and employ and compensate defendant in some capacity after Rush received a professional contract.

a. Specifically, defendant continually told Rush during 1996-98 that he was currently taking care of him and therefore they should stay together in the future.

b.  Moreover, the payments to Rush from defendant were made secretly and in cash with a cover story developed for Rush in the event the NCAA learned of these payments.

c. Specifically, defendant told Rush that he should claim that the payments were based on a pre-existing relationship rather than to participate in summer league basketball tournaments for the CMH 76'ers.

        39.  Thereafter, defendant paid Rush for participating in the following summer league basketball tournaments for the CMH 76'ers during 1997:

a. $150 for the Spiece Run N Slam All-Star Classic at Purdue University in Lafayette, Indiana on May 2-4;

b. $100 for the Reebok/Bob Gibbons Tournament of Champions in Durham, Chapel Hill, and Raleigh, North Carolina on May 23-25;

c.  $100 for the CMH 76'ers Invitational in Lawrence Kansas on June 20-22;

d. $200 for the Nike Peach Jam Invitational in Augusta, Georgia on July 14-17;

e. $200 for the Nike Supershowcase in Kissimmee, Florida on July 18-20;

f. $200 for the Slam-N-Jam NIT in Long Beach California on July 20-24; and

g. $200 for the Las Vegas Grand Finale in Las Vegas, Nevada on July 27-30.

        40.  Additionally, defendant paid Rush $100 per week during 1997 and also made several payments to him for special occasions including approximately $300 for Valentine's Day, approximately $200 for a school dance, approximately $300 for Rush's birthday on April 12, approximately $250 for New Year's Eve, and additional money for participating in the Missouri State High School Boys Basketball Championship.

        41.  In January 1998 defendant gave Rush $5,00 in cash in an envelope at defendant's residence at 13623 East 50th Street, Kansas City, Missouri, for the lease of a 1998 Chevrolet Blazer, on the condition that Rush not accept a basketball scholarship at the University of Kansas.

a. Moreover, defendant assured that this vehicle was titled in the name of Rush's aunt, Michelle Rush, because this lease constituted an NCAA violation.

b. Thereafter, in February 1998, defendant made a payment of $300 to Rush for the Chevrolet Blazer and an additional $300 payment for the vehicle in March 1998.

c. Consequently, defendant made payments to Rush of approximately $2,250 in 1996, approximately $9,150 in 1997, and approximately $5,600 in 1998 for a total payment of approximately $17,000.

(3) Corey Maggette

        42.  Beginning on or about April 1997, defendant initiated a scheme to make payments to Corey Maggette for participating in summer league basketball tournaments for the CMH 76'ers.

a.  These payments were made secretly and in cash based on Maggette's performance during tournaments.

b.  Specifically, defendant initially paid Maggette approximately $200 after a team practice in Kansas City, Missouri, during April 1997.

c. Subsequently, during 1997 defendant paid Maggette approximately $300 during the Spiece Run-N-Slam All-Star Classic at Purdue University in Lafayette, Indiana on May 2-4,; approximately $1,000 during the CMH 76'ers Invitational in Lawrence, Kansas on June 20-22; and approximately $500 during the Nike Peach Jam Invitational in Augusta, Georgia on July 14-17.

d. Consequently, defendant paid Maggette approximately $2,000 for participating in summer league basketball tournaments for the CMH 76'ers' during 1997.

        43.  Moreover, defendant conferred benefits on Maggette, Jaron Rush, and Young which were not available to the remainder of the team.  Consequently, Albert Collins confronted defendant concerning this activity and told him not to treat the players that way.  However, in regard to Rush and Young defendant stated they are Division I (caliber players) and the other guys are nothing.

(4) Kareem Rush

        44. Beginning on or about April 3, 1997 defendant initiated a scheme to make payments to Kareem Rush for participating in summer league basketball tournaments for the CMH 76'ers.

a.  These payments were made to Rush secretly and in cash either at defendant's residence, the Kansas City International Airport, or a hotel room rented for defendant or Rush.

b.  Additionally, defendant encouraged Rush to keep these payments confidential because they constituted an NCAA violation.

        45.  Specifically, defendant paid Rush an average of $100 for participating in the following tournaments in 1997:

a.  the Boo Williams Invitational in Hampton, Virginia on April 4-6;

b. the Spiece Run-N-Slam All-Star Classic at Purdue University in Lafayette, Indiana, on May 2-4;

c. the Reebok/Bob Gibbons Tournament of Champions at Durham, Chapel Hill, and Raleigh, North Carolina on May 23-25;

d. the Slam-N-Jam NIT in Long Beach, California on July 20-24, and

e.  the Las Vegas Grand Finale in Las Vegas, Nevada on July 27-30.

        46.  Subsequently, defendant made approximately ten (10) $100 payments for approximately $1,000 to Rush between September 1997 and June 1998.  Specifically, these payments were made in secret and occasionally were provided to Rush in Nike shoe boxes.

a. Additionally, defendant also provided Rush with approximately four (4) pairs of Nike Air Jordan shoes worth $500 during this period.

b.  Moreover, defendant made several payments to Rush for special occasions at this time including approximately $200 for the Pembroke Hill High School prom, approximately $100 for homecoming at Pembroke Hill High School, and approximately $100 for Rush's birthday on October 30.

        47.  The above payments were made by defendant to compensate Rush for participating in summer league basketball tournaments with the CMH 76'ers and to ensure that Rush remained loyal to defendant and employ and compensate him after Rush signed a professional contract.

a. Specifically, defendant continually told Rush that he should currently take care of him and therefore Rush would have to take care of defendant later.

b. Moreover, defendant told Rush and his brother Jaron Rush that he wanted to represent them in some capacity after they signed a professional contract.

        48.  Subsequently, defendant paid Rush an average of $100 for participating in the following summer league basketball tournaments for the Kansas City Rebels during 1998:

a.  the Boo Williams Invitational in Hampton, Virginia on April 2-5;

b. the Spiece Run-N-Slam All-Star Classic at Purdue University in Lafayette, Indiana on May 1-3; and

c. the St. Louis Eagles Invitational in St. Louis, Missouri on May 22-24.

49.  Consequently, between 1997-98 defendant made payments to Rush of approximately $800 during travel tournaments; approximately $1,000 after the summer tournament season including payments in Nike shoe boxes; approximately $500 for special occasions; and provided Rush with approximately $500 worth of Nike shoes for a total benefit of approximately $2,800.

(5) Andre Williams

        50.   Beginning on or about April 1, 1998, defendant initiated a scheme to make payments to Andre Williams for participating in summer league basketball tournaments for the Kansas City Rebels.

a.  Specifically, defendant made or caused to be made all payments to Williams secretly and in cash either at defendant's hotel room, the Kansas City International Airport, or a gas station between Kansas City and St. Louis, Missouri.

b. Initially, defendant caused a payment of $100 to be made from Allen Kelly to Williams at the Kansas City International Airport prior to the Boo Williams Invitational in Hampton, Virginia on April 2-5, 1998.

        51.  Subsequently, defendant told Williams he would pay him between $100-$200 per week to play for the Kansas City Rebels.

a.  Specifically, defendant stated that it was Williams' and Kareem Rush's year and that he would take care of them like he took care of Jaron Rush and Young.

b.  Thereafter, defendant made a payment of approximately $50 to Williams at the Spiece Run-N-Slam All-Star Classic at Purdue University in Lafayette, Indiana on May 1-3, 1998.

c. Additionally, defendant made a payment of $100 to Williams prior to the St. Louis Eagles Invitational on May 22-24, 1998, for a total payment of $250.

        52.  These payments were made by defendant as compensation to Williams for participating in summer league basketball tournaments and to ensure that Williams remain loyal to defendant and employ and compensate him after he signed a professional contract:

a.  Specifically, defendant told Williams that he would represent Jaron Rush after he signed a professional contract.

b. Moreover, defendant further stated that he would scratch Williams' back on the condition that Williams would later scratch defendant's back.

B.  Payments from Thomas W. Grant

        53.  During the summer of 1995, defendant was hired by Thomas Grant to coach the CMH 76'ers and paid a salary of $10,000 and an additional payment of $13,000 to assist in a basketball camp in Kansas City.

a. Thereafter, in 1996, Grant paid defendant $37,260 for coaching this team and defendant received $40,000 in salary from Grant in 1997.

b.  Subsequently, defendant was fired by Grant and in 1998 he received $16,100 in severance pay in addition to payments of $57,975.99 and $10,00 from Grant to defendant's basketball foundation for a total compensation of approximately $184,435.99

        C. Payments from Nike

        54.  Donald Crenshaw was the manager of high school basketball for Nike specializing in elite teams and determined which summer league basketball teams Nike sponsored nationwide.

a.  Specifically, Nike was engaged in funding elite summer league basketball teams throughout the country featuring exceptional high school basketball players.

b.  Consequently, Crenshaw traveled to Los Angeles, California, during the summer of 1995 to observe the CMH 76'ers participate in a tournament.

c.  At that time Crenshaw determined that the CMH 76'ers were an elite team eligible for Nike sponsorship and on or about June 26, 1996, provided defendant with an initial payment of $5,000 for travel expenses for the CMH 76'ers.

        55.  Subsequently, defendant executed a travel team contract with Nike on July 10, 1997, providing for $50,000 in consulting fees for defendant annually for five (5) years, $15,000 for travel expenses for the CMH 76'ers annually for five (5) years, and $100,000 for product including shoes and other apparel for defendant and the team during the five-year term of the contract for a total potential benefit of $425,000.

a. At that time, on or about July 9, 1997, Nike mailed defendant the initial $50,000 check for consulting fees.

b.  Thereafter, on or about February 24, 1998, Nike wire-transferred defendant a payment of $15,000 for travel expenses for the CMH 76'ers.

c. Subsequently, on or about June 12, 1998, Nike wire-transferred $50,000 for consulting fees to defendant's account at United Missouri Bank in Kansas City, Missouri.

d. Additionally, Nike provided defendant with apparel and shoes worth $44,866 between April 1997 and July 1998 for a total payment of $159,866 to defendant from Nike for the period June 1996 to July 1998.

        56.   Thereafter, on or about November 9, 1998, Nike terminated its travel expense allotment to defendant of $15,000 annually because of defendant's failure to take the Kansas City Rebels to tournaments.   Subsequently, on or about January 15, 1999, Nike terminated defendant's consulting fee arrangement based on defendant's unauthorized agreement with Mark Tilford and Traceye Laws to provide Nike shoes for resale in November 1998.

D.  Payments from Sports Agents

       57.  During 1997 defendant requested the names of three (3) African-American sports agents from Nike consultant George Raveling in an effort to secure representation for Korleone Young.  In response, Raveling recommended Len Elmore in Washington, D.C., Eugene Parker in Fort Wayne, Indiana, and Jerome Stanley in Los Angeles, California.

a.  Subsequently, in late July 1997 defendant met with Raveling and Stanley in Las Vegas, Nevada, to discuss potential salary ranges for Young as a first-round draft pick in the National Basketball Association.

        58.  Following this meeting, Stanley made several payments to defendant in exchange for defendant's promotional activity on Stanley's behalf in the basketball community including $20,000 on August 1, 1997, $6,000 on November 24, 1997; $1,000 on December 11, 1997,; $900 on December 18, 1997; $6,000 on December 31, 1997; $6,000 on February 5, 1998; $500 on February 27, 1998; $5,000  on April 1, 1998, and $4,000 on May 8, 1998 for a total of $49,400.  Although Stanley has characterized these payments as "loans" no loan documentation exists to substantiate this claim.

a.  Thereafter, during 1997, Stanley met Jaron Rush at defendant's residence in Kansas City, Missouri.

b.  Subsequently, Stanley made four (4) $50 payments to Rush in a parking lot at the UCLA campus during the 12998-99 academic year.

        59.  During the fall of 1997, defendant also met with sports agent Kevin Poston from Detroit, Michigan, at defendant's residence to discuss the representation of Young.  At that time, Poston told defendant that he could attempt to obtain a Nike endorsement contract for Young that would be structured to provide money for defendant's basketball foundation.

a.  However, defendant allowed Young to sign a representation agreement with Stanley during the spring of 1998.

b. Following this contract, Stanley obtained an endorsement offer from Nike in April 1998 providing for a $100,000 signing bonus and $400,000 in endorsement fees for Young over a four-year period.

c.  However, Young terminated Stanley in May 1998 after defendant indicated that Poston rather than Stanley was taking care of defendant financially.

        60.  Subsequently, on May 26, 1998, Poston signed a standard player agent contract with Young.

a.  Thereafter, Poston made various payments to defendant and his basketball foundation during 1998 including:  $5,000 on May 11;  $2,500 on June 15;  $1,200 on July 10;  a $15,000 non-interest loan on July 13, and $3,000 on July 13 for a total of $26,700.

b.  Additionally, during the summer of 1998, defendant paid for Jaron Rush to travel to Houston to meet Poston and several of his clients including Anfernee Hardaway, Charles Woodson, Ty Law, and Robert Horry.

    E.  Mailings, Wire Transfers, and Interstate Telephone Calls

        61.  On or about April 2, 1998, Jaron Rush placed or caused to be placed in the United States Postal Service and mailed an application for undergraduate admission and scholarships to the University of California at Los Angeles (UCLA) from his residence at 2805 East 62nd Street, Kansas City, Missouri.

a.  Thereafter, on or about April 8, 1998, Rush sent or caused to be sent via Federal Express, a commercial interstate carrier, and mailed a National Letter of Intent to UCLA from Pembroke Hill High School at 5121 State Line, Kansas City, Missouri.

b.  Subsequently, Rush placed or caused to be placed in the United States Postal Service and mailed a UCLA Statement of Legal Residence on or about May 14, 1998, from his residence at 2805 East 62nd Street, Kansas City, Missouri, to UCLA.

        62.  On or about April 20, 1999, Andre Williams placed or caused to be placed in the United States Postal Service and mailed an application for admission to Oklahoma State University in Stillwater, Oklahoma, from his residence at 2303 North Early Street, Kansas City, Kansas.

a. Additionally, Williams' mother, Deborah Williams, sent via Federal Express, a commercial interstate carrier, and mailed on November 11, 1998, a National Letter of Intent from her residence at 2303 North Early Street, Kansas City, Kansas, through KCI at Kansas City, Missouri, to Maine Central Institute in Pittsfield, Maine.

b.  Thereafter, Andre Williams sent via Federal Express, a commercial interstate carrier, and mailed the National Letter of Intent on or about November 12, 1998, to Oklahoma State University in Stillwater, Oklahoma, from his residence at Maine Central Institute in Pittsfield, Maine.

        63.  On or about April 23, 1999, Kareem Rush placed or caused to be placed in the United States Postal Service and mailed a National Letter of Intent to the University of Missouri in Columbia, Missouri, from his residence at 2805 East 62nd Street, Kansas City, Missouri.

a.  Thereafter, on or about April 27, 1999, Rush placed or caused to be placed in the United States Postal Service and mailed a financial aid agreement form to the University of Missouri in Columbia, Missouri, from his residence at 2805 East 62nd Street, Kansas City, Missouri.

        64.  On or about July 9, 1997, defendant caused to be placed in the United States Postal Service and mailed from Nike, Inc., One Bowerman Drive, Beaverton, Oregon, a check in the amount of $50,000 payable to the order of Myron Piggie and sent to defendant at 1715 Kensington, Kansas City, Missouri.

a. Subsequently, on February 24, 1998, defendant caused a wire transfer payable to Myron Piggie in the amount of $15,000 to be sent in interstate commerce from Nike in Beaverton, Oregon to United Missouri Bank in Kansas City, Missouri.

b.  Thereafter, on or about June 12, 1998, defendant caused a wire transfer payable to Myron Piggie in the amount of $50,000 to be sent in interstate commerce from Nike in Beaverton, Oregon, to United Missouri Bank in Kansas City, Missouri.

        65.  On or about February 3, 1997, at 10:32 p.m. defendant made an interstate telephone call from Kansas City, Missouri, to Corey Maggette in Illinois for the purpose of recruiting Maggette to join the CMH 76'ers and participate in summer league basketball tournaments during 1997.

a.  Thereafter, defendant made a series of interstate telephone calls to Maggette between February 3 and July 12, 1997, to facilitate Maggette's participation in summer league basketball tournaments for the CMH 76'ers.

All in violation of Title 18, United States Code, Section 371.

COUNT TWO

        1.  The grand jury realleges and incorporates by reference the allegations in paragraphs one (1) through sixty-five (65) of this Indictment.

        2.  On or about April 8, 1998, in the Western District of Missouri and elsewhere, MYRON C. PIGGIE, defendant herein, for the purpose of executing the foregoing scheme, did knowingly cause to be deposited, an envelope addressed to the University of California at Los Angeles, in Los Angeles, California, containing a 1998 National Letter of Intent signed by Jaron Rush, to be sent by Federal Express, a commercial interstate carrier;

        All in violation of Title 18, United States Code, Sections 1341 and 2.

COUNT THREE

        1. The grand jury realleges and incorporates by reference the allegations in paragraphs one (1) through sixty-five (65) of this Indictment.

        2. On or about April 23, 1999, in the Western District of Missouri and elsewhere, MYRON C. PIGGIE, defendant herein, for the purpose of executing the foregoing scheme, did knowingly cause to be placed in an authorized depository for mail matter, an envelope addressed to the University of Missouri at Columbia, Missouri, containing a 1999 National Letter of Intent signed by Kareem Rush to be sent and delivered by the United States Postal Service;

        All in violation of Title 18, United States Code, Sections 1341 and 2.

COUNT FOUR

        1.  The grand jury realleges and incorporates by reference the allegations in paragraphs one (1) through sixty-five (65) of this Indictment.

        2. On or about November 11, 1998, in the Western District of Missouri and elsewhere, MYRON C. PIGGIE, defendant herein, for the purpose of executing the foregoing scheme, did knowingly cause to be sent via Federal Express, a commercial interstate carrier, from 2303 North Early Street, Kansas City, Kansas, through Kansas City International Airport at Kansas City, Missouri, an envelope addressed to Andre Williams in Pittsfield, Maine, containing a 1999-00 National Letter of Intent to be signed by Andre Williams and subsequently sent to Oklahoma State University at Stillwater, Oklahoma, via Federal Express, a commercial interstate carrier;

    All in violation of Title 18, United States Code, Sections 1341 and 2.

COUNT FIVE

        1.  The grand jury realleges and incorporates by reference the allegations in paragraphs one (1) through sixty-five (65) of this Indictment.

        2.  On or about February 3, 1997, in the Western District of Missouri and elsewhere, MYRON C. PIGGIE, defendant herein, for the purpose of executing the foregoing scheme, did knowingly cause to be transmitted by wire communication in interstate commerce, certain signs, signals and sounds, that is, an interstate telephone call to Corey Maggette in Illinois from Kansas City, Missouri;

        All in violation of Title 18, United States Code, Section 1343.

COUNT SIX

        During the calendar year 1995 MYRON C. PIGGIE, defendant herein, a resident of Kansas City, Jackson County, Missouri, had and received gross income of approximately $23,100; by reason of such gross income he was required by law, following the close of the calendar year of 1995, and on or before April 15, 1996, to make an income tax return to the District Director of the Internal Revenue Service for the Internal Revenue District of Kansas/Missouri, at St. Louis, Missouri, or to the Director, Internal Revenue Service Center, at Kansas City, Missouri, or other proper officer of the United States, stating specifically the items of his gross income and any deductions and credits to which he was entitled; well-knowing and believing all of the foregoing, he did willfully fail to make an income tax return to said District Director of the Internal Revenue Service, to said Director of the Internal Revenue Service Center, or to any other proper office of the United States; all in violation of Title 26, United States Code, Section 7203.

COUNT SEVEN

        During the calender [sic] year 1996, MYRON C. PIGGIE, defendant herein, a resident of Kansas City, Jackson County, Missouri, had and received gross income of approximately $39,960; by reason of such gross income he was required by law, following the close of the calendar year of 1996, and on or before April 15, 1997, to make an income tax return to the District Director of the Internal Revenue Service for the Internal Revenue District of Kansas/Missouri, at St. Louis, Missouri, or to the Director, Internal Revenue Service Center, at Kansas City, Missouri, or other proper officer of the United States, stating specifically the items of his gross income and any deductions and credits to which he was entitled; well-knowing and believing all of the foregoing, he did willfully fail to make an income tax return to said District Director of the Internal Revenue Service, to said Director of the Internal Revenue Service Center, or to any other proper office of the United States; all in violation of Title 26, United States Code, Section 7203.

COUNT EIGHT

    During the calendar year 1997, MYRON C. PIGGIE, defendant herein, a resident of Kansas City, Jackson County, Missouri, had and received gross income of approximately $91,900; by reason of such gross income he was required by law, following the close of the calendar year of 1997, and on or before April 15, 1998, to make an income tax return to the District Director of the Internal Revenue Service for the Internal Revenue District of Kansas/Missouri, at St. Louis, Missouri, or to the Director, Internal Revenue Service Center, at Kansas City, Missouri, or other proper officer of the United States, stating specifically the items of his gross income and any deductions and credits to which he was entitled; well-knowing and believing all of the foregoing, he did willfully fail to make an income tax return to said District Director of the Internal Revenue Service, to said Director of the Internal Revenue Service Center, or to any other proper office of the United States; all in violation of Title 26, United States Code, Section 7203.

COUNT NINE

During the calendar year 1998, MYRON C. PIGGIE, defendant herein, a resident of Kansas City, Jackson County, Missouri, had and received gross income of approximately $99,100; by reason of such gross income he was required by law, following the close of the calendar year of 1998, and on or before April 15, 1999, to make an income tax return to the District Director of the Internal Revenue Service for the Internal Revenue District of Kansas/Missouri, at St. Louis, Missouri, or to the Director, Internal Revenue Service Center, at Kansas City, Missouri, or other proper officer of the United States, stating specifically the items of his gross income and any deductions and credits to which he was entitled; well-knowing and believing all of the foregoing, he did willfully fail to make an income tax return to said District Director of the Internal Revenue Service, to said Director of the Internal Revenue Service Center, or to any other proper office of the United States; all in violation of Title 26, United States Code, Section 7203

    COUNT TEN

        1.  Between November 1, 1998 and November 18, 1998, both dates being approximate, MYRON C. PIGGIE, defendant herein, devised a scheme to defraud Mark Tilford and Traceye Laws of money by means of false and fraudulent representations and promises.

The Scheme and Artifice to Defraud

        2.  It was part of this scheme that defendant initiated negotiations with Mark Tilford and Traceye Laws in November 1998, concerning the sale of Nike shoes in the Kansas City area.   Specifically, defendant falsely represented that he had established an arrangement with Nike which permitted him to receive Nike apparel at wholesale cost for resale.   Therefore, it was defendant's proposal that Tilford and Laws contribute $6,000 to defendant for the purchase of Nike shoes to be resold to Kansas City area high schools.

        3.  It was further a part of this scheme that defendant falsely represented that he would contribute $7,000 to this venture and falsely represented that he would purchase 260 pairs of Nike shoes at the wholesale cost of $13,000.  Additionally, defendant falsely represented that the shoes would be resold for $22,000 and that the gross income would be evenly divided between defendant and Tilford.

       4.  It was further a part of this scheme that defendant executed a joint venture agreement with  Tilford and Laws on November 17, 1998.  Pursuant to this agreement, defendant falsely represented that he would use the money provided by Tilford and Laws solely for the purchase of athletic apparel.  Additionally, defendant falsely represented that he would return the money invested by Tilford and Laws if the transaction was not completed.

        5.  It was further a part of this scheme that defendant caused Tilford to obtain a cashier's check payable to Myron Piggie in the amount of $6,000 from the Mercantile Bank in Overland  Park, Kansas, for the purchase of Nike shoes.  Thereafter, defendant caused Tilford to transport the check to Kansas City, Missouri, on November 18, 1998, at the Cash Box in Kansas City, Missouri, for defendant's own personal purposes.

The Violation

        6.  On or about November 17, 1998, in the Western District of Missouri and elsewhere, MYRON C. PIGGIE defendant herein, having devised and intended to devise the aforesaid scheme and artifice to defraud and for obtaining money and property by means of false and fraudulent pretenses, representations, and promises, did induce Mark Tilford to travel in interstate commerce from the State of Kansas to the State of Missouri in the execution of the scheme or artifice to defraud Mark Tilford of money or property having a value of $5,000 or more; that is, a cashier's check payable to Myron Piggie in the amount of $6,000;

        All in violation of Title 18, United States Code, Section 2314.

COUNT ELEVEN

        1.  The grand jury realleges and incorporates by reference the allegations in paragraphs one (1) through five (5) of Count Ten of this Indictment.

The Violation

        2.  On or about November 18, 1998, in the Western District of Missouri and elsewhere, MYRON C. Piggie defendant herein, having devised and intended to devise the aforesaid scheme and artifice to defraud and for obtaining money and property by means of false and fraudulent pretenses, representations, and promises, did transport and cause to be transported a cashier's check payable to Myron Piggie in the amount of $6,000 to travel in interstate commerce from the State of Missouri to the State of Kansas as  part of the normal course of banking activity in the execution of the scheme or artifice to defraud Mark Tilford of money or property having a value of $5,000 or more; that is, a cashier's check payable to Myron Piggie in the amount of $6,000;

        All in violation of Title 18, United States Code, Section 2314.

                    A TRUE BILL

 

                                                                                                                    [Signature                        ]
                                                                                                                    FOREPERSON OF THE GRAND JURY

 

[Signature                             ]
William L. Meiners #28263
Assistant United States Attorney