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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.

Paul Bryant Jr. seems to have quite a bit in common with Nevin Shapiro. Bryant has donated significant dollars to the Alabama athletic program, and he has clear ties to financial skulduggery.

Do the comparisons go even farther? Federal prosecutors, and the NCAA, should be looking into that question.

Originally posted to RogerShuler on Thu Aug 25, 2011 at 09:47 AM PDT.

Also republished by The Wide World of Sports.

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Comment Preferences

  •  You do such great work, thank you (2+ / 0-)
    Recommended by:
    ExStr8, IndieGuy
  •  The NCAA goal has never (3+ / 0-)

    been to clean up programs ... just to clean up.  If someone doesn't make a problem front page news, its not a problem.

    Please move along, nothing to see here ....

    (Great diary, Tip'ed and rec'ed)

    I am a statistician, not a magician although we are easily confused. I guess that explains why people keep trying to tie me in chains and place me under water.

    by Edge PA on Thu Aug 25, 2011 at 10:36:48 AM PDT

  •  May need a smoking gun before anything happens. (0+ / 0-)
    Federal prosecutors, and the NCAA, should be looking into that question.

    Local prosecutors wouldn't touch this with a 50-foot pole, and the NCAA will just ignore these ties without something too big to ignore hitting the news.  Unless any Feds already involved in the Miami investigation can find some solid leads to follow - assuming they were looking for any - it's doubtful they'll get involved.

    I'm one of those who invites this sort of scrutiny.  I am a huge college football fan, and would like to see the sport stay clean as clean as possible.

    "Faced with what is right, to leave it undone shows a lack of courage." - Confucius

    by IndieGuy on Thu Aug 25, 2011 at 10:39:03 AM PDT

  •  Another Shuler hit job on Bama. (1+ / 0-)
    Recommended by:

    This gets old.

    Lets sort out some basics.

    Shapiro is telling all in the Miami scandal. He tells of paying players, buying gifts for players, housing and feeding players, buying $24,000 dog tags for one player and for having a tight system of recruiting players to Miami through providing of illegal benefits. Shapiros system resulted in the Canes landing multiple 5 star football prospects.

    Additionally, and at the heart of who Shapiro really is, you find his ponzi scheme(s). For that, he has been sentenced to prison or will be in short order.

    Yes, two Bama FIRST YEAR coaches are from Miami. They began their Alabama affiliation THIS year. They were vetted by Alabama compliance officers.

    On to Mr Bryant, Jr. You cite many business irregularities, which may be fact. Frankly, I dont know. I have not followed Mr Bryant and I no longer live in Alabama.

    But without a doubt, you have drawn zero effective connection between Mr Bryant and illegal activities related to Bama football. ZERO.

    Each time is see the diarists name, I naturally assume its a hit peice on Bama football. His history proves such.

    There may be correlaries between Shapiro and Bryant in business, but there are none in football.

    Donut for your lack of effort.

    •  Well, (0+ / 0-)

      Mr. Bryant's company was implicated in a $15-million insurance fraud scheme in 1997--that's a matter of public record, and I have published the documents that prove it.

      In 2002 or thereabouts, Mr. Bryant gave $10 million to a major fund supporting UA athletics.

      The dots are not all connected yet, but a key question is: Where did that $10 million come from? Those are the kinds of questions that were asked about Mr. Shapiro; they need to be asked of Mr. Bryant.

      UA fans and supporters also should ask: What is a guy like Mr. Bryant doing as a member of the board of trustees? A guy with ties to insurance fraud is on the university's leadership team. That doesn't sound so good to me.

      Are you comfortable with that arrangement? I do live in Alabama, and my taxpayer dollars support the university, and I definitely am not comfortable with it.

  •  Hey, LegalSchnauzer: What's Kirby Hocutt's slice (0+ / 0-)

    in this "The U" scandal? He just took over the AD job at Texas Tech this year (passing over far more-qualified candidates, IMO, including a highly-respected former head coach, who brought the school its only national championship in any sport ever).
    He claims total ignorance of the access to the team granted the grifter who's now in a federal pen.

    LBJ & Lady Bird, Sully Sullenberger, Molly Ivins, Barbara Jordan, Ann Richards, Drew Brees: Texas is No Bush League! -7.50,-5.59

    by BlackSheep1 on Thu Aug 25, 2011 at 11:18:04 AM PDT

    •  BlackSheep: (1+ / 0-)
      Recommended by:

      I think you ask a very interesting question. Mr. Hocutt seemed to bolt awfully quickly from the U of M for some reason. Was he even there two years? Long enough to fire Randy Shannon as coach, and that's about it. His name might be dragged into this.

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