The Los Angeles Clippers' salary cap circumvention schemes to illegally pay Kawhi Leonard have also triggered a criminal investigation by the U.S. Justice Department.
Credit Getty Images via AFP-SCANPIX
The United States Justice Department will also be taking over to further investigate the Los Angeles Clippers' salary cap circumvention issue with Kawhi Leonard.
According to Michael Schmidt, William Rashbaum, and Santul Nerkar of The New York Times, federal prosecutors have opened a criminal probe into the NBA scandal.
The investigation is still in its early stages and is being handled by the U.S. Attorney’s Office in Brooklyn.
LA Clippers under investigation by US Justice Department over Kawhi Leonard salary cap scandal
Per the report, federal authorities began examining the matter even before the NBA handed down its brutal punishment against the Los Angeles Clippers.
Investigators are looking into whether Steve Ballmer and Clippers executives used hidden sponsorship deals to pay Kawhi Leonard outside the NBA’s salary cap rules, which involves the notorious no-show endorsement contract with Aspiration, a bankrupt environmental startup.
It remains unclear what the investigation covers, who is being targeted, or what possible crimes are being examined against the figures involved. However, prosecutors have issued at least one subpoena as part of the probe.
The NBA and the Clippers have yet to respond on whether they are cooperating with the investigation or have received the subpoena.
Thank you for reading us! We have even more content for you.
If you like our content, please click here and add us as your preferred source. It helps us a lot, and we are committed to delivering you the very latest basketball news.