Tag:David Salinas
Posted on: August 1, 2011 5:18 pm
 

Salinas' assets ordered frozen by authorities

By Matt Norlander

The David Salinas story takes its next turn.

Monday, according to the Associated Press, the Securities and Exchange Commission (SEC), filed a lawsuit in Houston that ordered all of Salinas' assets to be frozen. It was an expected move, one that's come, thankfully, pretty quickly in the wake of this tragedy; Salinas killed himself just over two weeks ago.
The Texas State Securities Board says the suit targeting the estate of David Salinas was filed Monday in U.S. District Court in Houston. It says the suit also asks for the appointment of a temporary receiver to oversee the estate and several related companies. ... The Texas agency also says it's seeking to revoke the license of a related money manager.

A number of coaches who were affected by Salinas' Ponzi scheme have met with lawyers, and the process of figuring out how much -- if any -- of their money can be retrieved is just beginning. For now, Salinas' collectible/retrievable income, assets included, will be overtaken by the government. Where it goes from there, I have no clue; this is about as lawyer-unfriendly of a college hoops blog as you're going to find.

The question that now hangs: Is this move by the SEC good for the coaches? I think one thing might have little to do with the other. And now Brian Bjork, a right-hand man for Salinas who was identified in a recent Sports Illustrated story, seems will become the central target. He was heavily affiliated with the fraudulent company in question, J. David Financial, which subpoenaed by the SEC.

Salinas killed himself last month, and the effects of that have been felt through sadness, guilt, shame and regret within the college basketball coaches community ever since. They remain confused and conflicted over the tragedy, which few saw coming until it was too late.

Previously:

Category: NCAAB
Posted on: July 27, 2011 1:52 pm
Edited on: July 27, 2011 2:35 pm
 

David Salinas had taken step back from AAU scene

Jeff Goodman and Gary Parrish
CBSSports.com

LAS VEGAS – David Salinas had virtually no involvement in his summer basketball program over the last few years, several parents and players from the Houston Select program told CBSSports.com.

Salinas, the financial advisor and founder of Houston Select, committed suicide earlier this month in the midst of a Security an Exchange Commission (SEC) investigation in which he scammed college basketball coaches and other clients out of millions of dollars.

``He wasn’t involved in the program at all,” said Gerald Wilson, whose son, Garrett has been on the Houston Select team for the past two years. ``I wouldn’t know him if he walked in the gym now.”

``I’ve been coaching in the summer for a long time and he hasn’t been to a game in the last four years,” said Houston Select coach Greg Wise, the father of former Arizona guard Nic Wise.

The players also had no interaction with Salinas.

``I didn’t know him at all,” added Houston Select player John Gillon. ``He was never around. I never met him.”

``None of us knew him personally,” continued guard Garrett Wilson. ``My dad read about it, and he told me about it, but none of us had an affiliation with him, so it really didn’t bother us.”

Salinas was the chairman of J. David Financial Group and had, according to several sources, had a client roster that included numerous head and assistant coaches.

But the coaches comprised a small portion of the estimated $55 million that is unaccounted for.

Coaches such as Gonzaga assistant Ray Giacoletti, who had known Salinas for more than 20 years, and ex-Rice coaches Scott Thompson, Willis Wilson and Grey Giovanine had all begun investing with Salinas years ago.

However, the list of college coaches included Texas Tech’s Billy Gillispie, former Arizona coach Lute Olson, Baylor’s Scott Drew and Gonzaga’s Mark Few – among others. SI.com also reported that NBA players Cartier Martin and Ekpe Udoh lost money in the scheme.

According to sources, many of the coaches began investing over the last few years.

There have been several players that have come out of the Houston Select program that have signed with clients.

However, Houston Select was not a program that churned out Division 1 players at a high rate – and this year’s group doesn’t have a single high-level player.
Category: NCAAB
Posted on: July 26, 2011 7:30 pm
Edited on: July 26, 2011 7:40 pm
 

More names tied to Salinas uncovered

By Matt Norlander

You tired of the David Salinas story? If so, that's unfortunate, because there are more layers to it, still, and just because it's lost a little momentum doesn't mean it's lost relevance. Coaches affected by Salinas' death met with lawyers in Las Vegas over the weekend.

There's still a lot of panic over this. A lot of uncertainty. A lot of coaches stand to forever lose a lot of money because they weren't smart with their investments.

Sports Illustrated's Pablo Torre has been doing work on the ground in Houston -- where Salinas lived -- for the past week, and in advance of a profile of Salinas' final days and/or months, Torre retrieved more names and money amounts that were lost in the Ponzi scheme. That update was released Tuesday. Most of the names and numbers listed below were released last week, but there are still figures inside and outside of college basketball who dealt with Salinas, and whose names haven't been revealed.

It's important to note that the exclusion of those names doesn't infer dubious behavior; this saga is sad for those who knew Salinas, and it's embarrassing all the while as well. And some of the people who invested with Salinas weren't involved in this specific Ponzi scheme -- they didn't necessarily lose any money, in fact.

SI updated its list of the names attached to the Ponzi scheme, from highest to lowest amounts lost in at-risk bonds. I've attached them here.

-- Texas Tech head coach Billy Gillispie ($2.3 million)
-- Gonzaga assistant Ray Giacoletti ($1.2 million)
-- Former Arizona coach Lute Olson ($1.17 million)
-- Baylor football head coach Art Briles ($780,000)
-- Texas A&M-Corpus Christi head coach Willis Wilson ($642,000)
-- Baylor head coach Scott Drew ($621,000)
-- Augustana head basketball coach Grey Giovanine ($533,000)
-- Former Washington Wizards guard Cartier Martin ($374,000)
-- Gonzaga head coach Mark Few ($353,000)
-- Golden State Warriors forward Ekpe Udoh ($350,000)
-- Adidas staffer and Houston Select staffer Martin Fox ($249,000)
-- Illinois State head coach Tim Jankovich ($184,000)
-- Former Oklahoma State and Rice player Jason Skaer ($129,500)
-- Former New Mexico AD Rudy Davalos ($83,000)
-- Former Rice, Wichita State, Cornell head coach Scott Thompson ($65,000)
-- Nebraska head coach Doc Sadler ($38,000)
-- Arizona State associate athletics director Mike Chismar ($30,000)
-- Evansville assistant James Elgas ($24,000)
-- United States Merchant Marine Academy head coach Danny Nee ($23,000)
-- Creighton assistant Steve Lutz ($9,000)
-- Former Houston head football coach Bill Yeoman (unknown)
Category: NCAAB
Posted on: July 20, 2011 9:12 pm
Edited on: July 20, 2011 9:38 pm
 

Lute Olson releases statement on Salinas

By Jeff Goodman

There were some prominent names on the client list for the late David Salinas, none more so than Hall of Famer Lute Olson.

Olson, according to documents obtained by SI.com’s Pablo S. Torre, invested $1.17 million with Salinas -- the founder of the Houston Select program who committed suicide on Sunday.

Olson, who did not wish to comment earlier in the week when reached by CBSSports.com, was the latest to release a statement:

“I’ve known David (Salinas) for a long time and feel horrible for his family. That (his passing) is something that none of his friends could have expected.  Yes, I’ve invested with David, and he’s been a friend for a while, but I did not invest money until after I had retired from coaching.”

Olson’s one connection to the Houston Select program was former player Jawann McClellan, a highly touted wing who never quite lived up to expectations. 


Posted on: July 20, 2011 6:51 pm
Edited on: July 20, 2011 7:14 pm
 

Former 'Zona player talks Salinas and recruiting

By Matt Norlander

The faucet continues to drip.

Former five-star Arizona guard Jawann McClellan went on the record with the Arizona Republic, telling the newspaper he was "pretty sure" David Salinas was involved with college hoops coaches for more than just financial investments. 

McClellan is tied into this not just because he played basketball in the Houston area, but also because he was recruited by, and played for, Lute Olson at Arizona. Olson was reported to have lost $1.17 million dollars with Salinas, per a Sports Illustrated story that came out Tuesday.

McClellan did not say he was ever swayed -- nor attempted to be -- to play at Arizona by Salinas, though. It's just his feeling, his speculation that, despite Salinas appearing to be a pretty stand-up guy, he wouldn't put it past coaches to use the type of advantages Salinas could offer in an effort to get another prospect or two.

McClellan shocked some back in 2004 when he opted to leave the state and choose to play for the Wildcats out west.

"Coach Olson was probably one of his biggest clients and (committing to UA) caught a lot of people off guard," McClellan said Tuesday by phone from Houston. "A lot of people thought I was going to Texas, but I was confident in my decision."

McClellan said he chose the Wildcats primarily because of Olson and then-Arizona assistant coach Josh Pastner, though he also considered Kentucky before committing to UA in the summer of 2002.

We still truly haven't seen a smoking gun -- yet. Maybe we won't. But now we've got a few men on the record who have spoken about the dangerous, less than transparent behavior from Salinas. The Daily's Dan Wolken got a pretty significant quote out of former Houston coach Tom Penders, who basically said he didn't feel comfortable dealing with Salinas due to the man's ties with AAU basketball.

Everyone's standing in the room, shifting their eyes and jingling change in their pockets. Who will talk first? Is there something big out there still in hiding?

When pressed about Salinas' involvement in choosing Arizona, McClellan said this to the Arizona Republic:

McClellan said Salinas was only involved in his decision to attend UA because he was a friend of former UA assistant and former Rice head coach Scott Thompson, who saw McClellan play travel-ball events for Salinas' Houston Select team.

Whether anyone else managed to curry favor with Salinas, McClellan declined to say.

"I'm pretty sure Coach did run one of top two programs in the city, and I'm pretty sure he had players loaded up so you'd think coaches tried to get a relationship with him," McClellan said. "But whether Salinas went for that is neither here nor there."

Plenty of reporters are now on the hunt for former coaches and players who dealt with Salinas. The leaky plumbing probably isn't going to be patched up any time soon. On the heels of our initial report Sunday night, we've now seen three straight days of new, informative reporting on the subject. This slow-boil of a story could take weeks before we can see the breadth of its reach and those who were or were not in the wrong.

Photo: AP

Posted on: July 20, 2011 12:13 pm
Edited on: July 20, 2011 12:34 pm
 

Sources: NCAA actively looking into Salinas case

By Gary Parrish and Jeff Goodman

The NCAA is actively looking into connections between the college coaches who invested money with David Salinas and the prospects from his summer basketball program who went on to play for them, multiple sources have told CBSSports.com. This contradicts a report from Andy Katz stating that "a high-ranking source with direct knowledge of the NCAA's interest in the case told ESPN.com that the coaches invested money in the alleged scheme but that it isn't an NCAA issue."

"Of course it's an NCAA issue," one source told CBSSports.com's Jeff Goodman. "The NCAA is already looking into it. Why wouldn't they?"

Salinas committed suicide at his Houston-area home Sunday amid an investigation into his businesses by the United States Securities and Exchange Commission. CBSSports.com was the first to report Salinas' death and how the investigation centered around fraudulent investments that have cost college basketball coaches who invested with Salinas (in possible violation of NCAA rules) millions of dollars. The list of coaches CBSSports.com confirmed Sunday who had invested with Salinas included former Arizona coach Lute Olson, Baylor coach Scott Drew, Texas Tech coach Billy Gillispie, former Utah coach and current Gonzaga assistant Ray Giacoletti, Nebraska coach Doc Sadler, Texas A&M-Corpus Christi coach Willis Wilson, former Houston and Nevada coach Pat Foster, former Nebraska coach and current United States Merchant Marine Academy coach Danny Nee and Augustana College coach Grey Giovanine.

SI.com's Pablo Torre added details to the story on Tuesday when he reported Gonzaga coach Mark Few and former Rice, Wichita State and Cornell basketball coach Scott Thompson also invested with Salinas. That brings the number of college basketball coaches known to have invested with Salinas to 11. According to BallinIsAHabit.net's Rob Dauster, at least nine prospects who played for Salinas' Houston Select summer basketball program went on to play for one of those 11 coaches in college.

"So now the NCAA is trying to determine if the coaches who invested with Salinas gained a recruiting advantage," a source told CBSSports.com. "When was the money invested? When did they get the players? The NCAA is trying to connect the dots and see if they can determine if the coaches who invested gained a recruiting advantage when it came to pursuing Salinas' players."

Former Houston coach Tom Penders told The Daily's Dan Wolken on Monday that Salinas solicited him for a $100,000 investment in their first meeting and “made a strong, strong implication” that it would help him gain access to prospects that were part of the Houston Select program. Another coach who was also solicited but, like Penders, did not invest with Salinas told CBSSports.com's Gary Parrish he believes most, if not all, of the coaches involved knew there was a recruiting advantage to be gained because, he asked, why else would they invest with him?

"I invest my money with billionaires -- not AAU coaches," the coach said. "If they lost all their money, those guys got what they deserve."

Moses Malone Jr., a former Houston Select player and the son of Hall of Famer Moses Malone, told a Houston television station on Tuesday that he was questioned by an NCAA investigator on Monday and Tuesday about CBSSports.com's initial report.

"[Salinas] was helping a lot of impoverished kids get scholarships, but not everything that he was doing was legal," Malone told Fox 26 Sports' Mark Berman. "It just wasn't."
Category: NCAAB
Posted on: July 19, 2011 8:51 pm
Edited on: July 19, 2011 10:38 pm
 

The Salinas story gets more salacious

By Matt Norlander

A report by Sports Illustrated's Pablo S. Torre from Tuesday afternoon adds not only context but real gravity to the severity of the David Salinas situation.

On Sunday night, Gary Parrish and Jeff Goodman broke the news that Salinas, a man from Houston who funded the Houston Select AAU basketball team and was also a booster to Houston, Wichita State and Rice universities, was found dead. It was believed to be a suicide. Many coaches were financially involved with Salinas, who was and still is being investigated by the Securities and Exchange Commission.

Torre's report uncovered the known losses tied to Salinas to be a staggering $7.8 million among dozens of coaches, primarily from college basketball. His case has also now caught the attention of the FBI, according to Torre. That's because many more millions are missing from folks outside the athletic arena.

Among the coaches identified in SI's story -- many of whom were confirmed from the CBSSports.com initial report -- were Billy Gillispie, Mark Few, Scott Drew and Lute Olson (pictured), who has been out of the game for a few years. 

Gillispie has reportedly lost more than anyone in Salinas' Ponzi scheme, with Olson also flushing more than a million away.
According to documents reviewed by SI.com, the value of Gillispie's investment alone was purported to be $2.3 million; Olson's, $1.17 million; Drew's, $621,000; Few's, $353,000. ... SI.com has identified Few and former Rice, Wichita State and Cornell basketball coach Scott Thompson (investment most recently valued at $65,000) as the latest names to be added to an initial list of nine basketball coaches first reported by CBSSports.com. Those nine included: Gillispie; Olson; Drew; Nebraska coach Doc Sadler ($38,000); Texas A&M-Corpus Christi (and former Rice) coach Willis Wilson ($642,000); Gonzaga assistant (and former Utah head coach) Ray Giacoletti ($1.2 million); United States Merchant Marine Academy (and former Nebraska) coach Danny Nee ($23,000); Augustana College coach Grey Giovanine ($533,000); and former Houston and Nevada coach Pat Foster. Save for Foster, SI.com was able to independently confirm each of those individuals as clients of Salinas.

Salinas' tentacles reached beyond the college hoops world, though. The SI story states that football coaches from Texas, Baylor and Houston were duped, as well as Rudy Davalos, who was once the athletic director at New Mexico as well as an assistant with the San Antonio Spurs. Beyond that, plenty of other folks not involved in sports have lost money, and the expected total of assets lost could clear into the tens of millions of dollars, if not hundreds.

It seems we've only just begun with this saga. There are more names to come out, surely, and more money to be discovered as lost. Then ... the NCAA. What will it do about this? Nothing for a while, rest assured. The federal authorities will sift through this monstrosity of a catastrophe before the NCAA can even step through the threshold.

But the evidence will hang in the air until the NCAA gets its chance to speak. You have a man, now dead, who was tied into an AAU program. Myriad coaches were investing money with him for personal interest in inflating their assets. And that's supposed to not influence where players may have gone to college? This is an entirely new scenario, one without precedent for the NCAA to try and get its thick fingers around.

The fallout's only just begun. Will there be a paper trail? Will we see retroactive retribution from the NCAA if it can uncover any wrongdoing on behalf of the coaches? The coaches who trusted Salinas so much with their money, why wouldn't they trust him to help steer a player to this program or that one?

We've never seen it all. There's always another skeleton waiting to be unearthed.

The really interesting aspect about this situation is you've got all these coaches who've lost all this money, right? And few things make people as angry and chatty as losing significant portions of their wealth. Significant portions. But now they're going to be caught in a quandary. Bad enough that this is a public embarrassment for them, they can't talk too much on the subject, lest they risk implicating themselves. Only so much anger and dispersal of disappointment can be distributed before traceable illicit behavior on the recruiting trail surfaces as well.

Be mad and confused and angry as hell at Salinas over this mess but don't talk out of turn. Seems there could be a domino waiting to get the line clicking with one flick from a coach's mouth.

Welcome to the newest rabbit hole of intercollegiate sports.

Photo: AP

Category: NCAAB
Posted on: July 19, 2011 7:10 am
Edited on: July 19, 2011 7:11 am
 

Yes you did do what we said you did, Coach Nee

By Gary Parrish

CBSSports.com on Sunday reported the names of nine college basketball coaches confirmed to have invested money with David Salinas -- the co-founder of the Houston Select summer basketball program who committed suicide shortly after the United States Securities and Exchange Commission (SEC) launched an investigation into his investment business (J. David Financial Group).

Every coach named but one has either acknowledged the financial dealings with Salinas or declined comment. The lone exception is former Duquesne and Nebraska coach Danny Nee, who told the Omaha World-Herald he was aware of our report before adding, "Whatever they said I did, I didn’t do."

So what did we say Nee did?

We reported he invested money with Salinas.

Why did we report that?

Because a source provided us with a brochure from Select Asset Management, LLC -- another Houston-area investment firm that's run by Houston Select co-founder Brian Bjork and is associated with J. David Financial Group. The brochure features a "testimonial" from Nee, now the head coach at the United States Merchant Marine Academy. The testimonial reads: "I have been a client with J. David Financial Group since I was referred to them in 1995-96. After several financial planning sessions, I became very comfortable with their long-term visions and investment style. More importantly, I marvel at their track record in both up and down markets."

In other words, we stand by our report.
 
 
 
 
The views expressed in this blog are solely those of the author and do not reflect the views of CBS Sports or CBSSports.com