Pittsburgh financial advisor who scammed athletes was cooperator in federal NCAA bribe investigation
A former Pittsburgh financial adviser charged with running a Ponzi scheme with his athlete clients' money helped federal investigators with a bribery and corruption case involving four NCAA assistant basketball coaches, several news outlets have reported.
ESPN, Bloomberg and NBC News confirmed that Louis Martin "Marty" Blazer, who siphoned $2.35 million from professional athletes' investment accounts between 2010 and 2012, cooperated with investigators plumbing thousands of dollars of bribes used to steer promising high school and college athletes toward certain schools, sports agents and financial advisors.
FBI used Marty Blazer, who once swindled athletes into thinking they were investing into movies, to expose NCAA bribery case.
" Darren Rovell (@darrenrovell) September 26, 2017
The federal indictments announced in Manhattan federal court Tuesday included Chuck Person of Auburn University, Emanuel Richardson of the University of Arizona, who is also a former Pitt-Johnstown player and assistant, Tony Bland of USC and Lamont Evans of Oklahoma State.
According to the court paperwork , Person, a former NBA star and associate head coach at Auburn, agreed to accept about $91,000 in bribe payments from Blazer to steer Person's student-athletes and their families to use Blazer's services once they entered the NBA, and Person used Blazer to send money to student-athletes' families in violation of NCAA rules.
"Certain NBA draft picks can and do make tens of millions of dollars over their NBA career... a portion of which they invest and have managed through their financial advisors and business managers, resulting in lucrative fees for thoes agents and advisors," read the indictment. "As such... agents and other athlete advisors attempt to recruit student athletes early in their NCAA career, in violation of NCAA rules, including by paying bribes to the athletes' coaches and athletes and/or their families."
Evans met with Blazer and accepted a total of $2,500 in bribes in exchange for introducing him to a student-athlete in February; Richardson took a $15,000 bribe from Blazer and an undercover FBI agent in July; and Bland took $13,000 in bribes from an undercover agent in July during a meeting with the agent and Blazer.
Blazer had been the founder of Blazer Capital Management in Pittsburgh's South Side, and was accused of swindling money from five clients, including at least two professional athletes. The Securities and Exchange Commission complaint against him did not name any of the clients.
Witness at center of NCAA basketball bribe scandal is disgraced investment adviser https://t.co/vwaHnioee2
" CNBC (@CNBC) September 26, 2017
The SEC alleged that Blazer tried to convince one of his clients, an unidentified pro athlete, to invest in two movie projects for which Blazer was raising money. When the client refused, Blazer allegedly forged papers to move money from the client's accounts six times in 2010.
The client discovered the unauthorized transfers and demanded his money back, but Blazer just transferred $650,000 from the accounts of another pro athlete client.
Blazer had agreed to settle the charges without admitting or denying any of the allegations. According to the NCAA-case court documents, Blazer pleaded guilty this month to securities fraud, wire fraud, aggravated identity theft and making false statements as part of his cooperation agreement with the government.
The Associated Press contributed to this report.
Matthew Santoni is a Tribune-Review staff writer. Reach him at 724 836 6660, msantoni@tribweb.com or on Twitter @msantoni.
