A number of big time college basketball coaches – including Texas Tech’s Billy Gillispie, Arizona’s Lute Olson, Baylor’s Scott Drew, and Gonzaga’s Mark Few – have been defrauded of an estimated $7.8 million combined in a Texas-based ponzi scheme.
A Houston-based businessman and AAU team operator named J. David Salinas was allegedly behind the fraud.
He committed suicide on Sunday – in the midst of an SEC investigation.
The scheme centered around the issuing of corporate bonds, according to SI.com:
While investors, a number of whom included high-profile Houston businesspeople, did appear to receive statements from Salinas, it remains unclear whether the bonds themselves ever actually existed, and it is uncertain how much each coach initially invested. According to government filings reviewed by SI.com, Salinas was never actually a registered investment adviser representative, and the J. David Group was never registered as an investment adviser firm with the SEC.
This case will certainly gain the attention of the NCAA as well.
A large number of Houston high-school players connected with Salinas’ AAU team ultimately signed with schools coached by investors in the businessman’s J. David Financial Group.
Ponzi schemes seem to be the new flavour of the month in college sports.
Just days ago, reports revealed that a former Georgia football coach defrauded investors of $28 million in a similar scheme.
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