SoCalHoops Recruiting News

Myron Piggie Pleads Guilty To One
Fraud Count In Rush Case--(May 23, 2000)

Coincidence?

We think not. . . .

Ironic maybe, perhaps even a coordinated timing, but we doubt that this is a mere coincidence.

Proving that truth is much, much weider than any fiction we could ever dream up, on the same day that the NCAA issued a new set of  regulations governing the receipt of "impermissible" expenses by college athletes and recruits,  Myron Piggie, indicted by a federal grand jury last month for allegations that he paid money to his former players (including UCLA's Jaron Rush) while they were in high school as a part of a scheme to defraud schools like UCLA and the University of Missouri, entered a plea of  guilty today.

Really, we're not making this up. 

Piggie pleaded guilty today in United States District Court to one felony count of conspiracy to commit mail fraud and one misdemeanor count of failure to file an income tax return.

The Associated Press ran the story tonight, and rather than misquote it, or paraphrase it, here it is: 

Amateur coach admits making payments to high school stars

KANSAS CITY, Mo. (AP) _ Amateur basketball coach Myron Piggie admitted Tuesday that he schemed to defraud four major universities, their conferences and the NCAA by making payments to high school stars who played for him in summer league games.

Piggie, 39, of Kansas City, pleaded guilty before U.S. District Judge Gary Fenner to one felony count of conspiracy to commit mail fraud and a misdemeanor count of failing to file a federal income tax return. Under terms of a plea agreement, the government will move to dismiss other charges when Piggie is sentenced, Assistant U.S. Attorney William L. Meiners said. No date has been set for the sentencing and Piggie remains in custody
without bond.

Two unrelated indictments against Piggie were returned under seal on April 12 by a federal grand jury. One count being dismissed accused Piggie, who has a prior felony conviction, of illegal possession of a firearm. Also being dismissed will be the remaining nine counts in an 11-count indictment _ three of felony mail fraud, one of felony wire fraud, three misdemeanor counts of failing to file a tax return and two felony counts of interstate transport of fraudulently obtained funds.

Piggie could face a maximum sentence of five years in prison without parole and a fine of $25,000 on the conspiracy charge, and up to one year and $100,000 on the tax count. U.S. Attorney Steve Hill said Piggie acknowledged cash payments of $35,550 to the players between 1996 and 1999. Hill said that by pleading guilty Piggie admitted to scheming to defraud UCLA, Duke, Missouri and Oklahoma State, their conferences _ the Pacific-10, the Atlantic Coast and the Big 12 _ as well as the National Collegiate Athletics Association.

Hill said that Piggie, who coached the Kansas City-based Children's Mercy Hospital 76'ers in various summer league and Amateur Athletic Union games, made cash payments to players with the stated intention that they would compensate him later when they signed professional basketball and endorsement contracts. Hill said Piggie admitted using his players to obtain $420,401 for himself. The prosecutor said Piggie got $184,435 in salary and team sponsorship from Kansas City businessman Thomas Grant, $159,866 from Nike Corp. and $76,100 from sports agents Jerome Stanley and Kevin Poston.

According to Hill, Piggie admitted paying $17,000 to Kansas City's JaRon Rush, who later attended UCLA; $14,000 to Korleone Young of Wichita, who did not attend college but was drafted by the NBA's Detroit Pistons; $2,000 to Corey Maggette, who later attended Duke; $2,300 to Kareem Rush, JaRon's brother who went to Missouri; and $250 to Andre Williams, who went to Oklahoma State. Maggette, who played for the NBA's Orlando Magic this past season, has denied that he received the $2,000 from Piggie.

Hill said that by paying the players Piggie admitted depriving the universities, their conferences and the NCAA of their right to the honest services of the Rush brothers, Maggette and Williams during times they were suspended. Further, he said, Piggie admitted to causing those four players to fraudulently receive athletic scholarships worth just over $99,000.

The income tax count to which Piggie pleaded guilty involved the 1998 tax year, for which the government said he had income of $99,100. 

 
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