NC State linked to latest federal charges filed in college basketball investigation

(WGHP file photo)

RALEIGH, N.C. — Three athletic apparel executives are facing new charges in connection with an FBI investigation into college basketball, according to WTVD.

A new indictment alleges three Adidas executives defrauded four universities — including the University of Louisville, the University of Miami, the University of Kansas, and North Carolina State University.

According to the indictment, Jim Gatto and Merl Code conspired to funnel payments to the families of high school players in connection with the players’ commitments to play at the schools, with the expectation that the players would later sign endorsement deals with Adidas upon turning professional.

A grand jury charged Gatto, Code and Christian Dawkins with conspiracy to commit wire fraud and wire fraud

Prosecutors say an Adidas representative agreed to pay $90,000 to the family of a Kansas recruit and $40,000 to a recruit at North Carolina State, namely Dennis Smith Jr.

Read more: WTVD