Cross Posted at Legal Schnauzer
The evolving athletics scandal at the University of Miami has ties to Alabama--in more ways than one.
The most obvious connection involves the University of Alabama's football coaching staff, which includes former Miami assistants Jeff Stoutland and Joe Pannuzio. Reporters Charles Robinson and Dan Wetzel of Yahoo! Sports broke the Miami story, and their investigation implicates Stoutland and Pannuzio in the wrongdoing.
But the Alabama connections, in a sense, go way beyond the coaching staff. At the heart of the Miami scandal is a renegade booster named Nevin Shapiro, who is incarcerated for his role in a $930 million Ponzi scheme. Shapiro told Yahoo! Sports he provided thousands of impermissible benefits to at least 72 UM athletes from 2002 through 2010.
Alabama, it turns out, has a booster who probably can match Shapiro step for step in the rogue category. In fact, Paul W. Bryant Jr.'s connections to Alabama are way more powerful than those Shapiro enjoyed at Miami. After all, Bryant's father, the late Paul "Bear" Bryant, was the Crimson Tide's Hall of Fame coach for many years. And Bryant Jr. is more than just an enthusiastic fan; he is part of the university's leadership team, serving on its board of trustees.
Like Shapiro, Bryant has a history of shady business practices. Unlike Shapiro, Bryant managed to escape serious scrutiny from federal prosecutors. But how long will that last? If the NCAA is going to examine the actions of a rogue booster in Miami, shouldn't it also be taking a look at a questionable character in Tuscaloosa? If Shapiro is incarcerated for his role in a $930-million Ponzi scheme, why are Paul Bryant Jr. and his associates in Greene Group Inc. enjoying freedom?
As we have reported in more than a dozen posts, one of Bryant's companies has clear ties to insurance fraud. Public documents show that Alabama Reassurance was implicated in a $15-million scheme that netted a 15-year prison sentence for a Pennsylvania man named Allen W. Stewart in the late 1990s. An investigation of Alabama Re was called off, apparently because Bryant had friends in the U.S. attorney's office for the Northern District of Alabama.
G. Douglas Jones, now a lawyer at the Birmingham firm of Haskell Slaughter, had just become U.S. attorney for the Northern District of Alabama when the Alabama Re investigation was called off. Multiple sources tell Legal Schnauzer that Jones has ties to Bryant and has done legal work for him. I twice have asked Jones if he called off the Alabama Re investigation, and he has refused to answer the question. In fact, Jones has refused to answer any questions from me--including questions about his work with Rob Riley, son of former Governor Bob Riley, on a federal HealthSouth lawsuit that netted millions of dollars for plaintiffs' lawyers. Jones' refusal to answer questions from me is odd, given that he regularly is quoted in various media outlets. He becomes mute when the subjects of Paul Bryant Jr. and Rob Riley are raised.
Public documents indicate that Bryant, in a curious move, planned to liquidate Alabama Reassurance, even though the company had admitted assets of $238 million in 2006. The company essentially was replaced by a new entity called Alabama Life Reinsurance Company, which like its predecessor, is under Bryant's Greene Group Inc.
The Yahoo! Sports investigation shows that Shapiro got into hot water largely because he mixed his business interests with his passion for University of Miami sports. The Miami story also involves both federal crimes and apparent NCAA violations. Reports Charles Robinson:
Some of Shapiro's allegations were outlined in multiple recorded interviews with federal prosecutors brought on by charges he misappropriated nearly $83 million in investor funds with a fraudulent grocery distribution business. And it was Shapiro's cooperation in his Ponzi case which encompassed both fraud and money laundering which opened the door to his conduct at Miami.
"He agreed to cooperate with the government," said Shapiro's attorney, Maria Elena-Perez. "He had to be 100-percent truthful. And it has never been the government's position that he lied about his conduct or the conduct of others in his discussions with the U.S. Attorney's office.
"Once Miami was on the table, it opened up everything in that realm. And his cooperation with the NCAA was another level of him coming clean about conduct that wasn't above board with investor funds specifically things he was doing with everyone in the UM athletic program."
Want a neat summary of the Miami story? Robinson provides it:
Ultimately, what documents show is a booster who broke NCAA rules while simultaneously making tens of thousands of dollars in annual contributions to Miami's athletic program.
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