House Gate: The Reggie Bush House Scandal

[Walter Cronkite]

The Pac-10 said Sunday it will investigate the reported connection between a home where Reggie Bush's family lived and a man who sought to market the Southern California star tailback.

Bush's family allegedly lived in the house in Spring Valley, Calif., owned by a man who had sought to handle the star tailback's professional marketing while Bush was still playing for USC, Yahoo.com reported Sunday.

The Web site reported that the family moved out of the house this weekend after questions over its ownership arose.

Bush, the 2005 Heisman Trophy winner, chose to turn pro after his junior season with USC. He is expected to be the No. 1 pick in Saturday's NFL draft.

"Rather than jumping to conclusions, we need to determine the facts before commenting on this report,'' USC athletic director Mike Garrett said in a statement. "We have asked the Pac-10 to look into this.''

Pac-10 spokesman Jim Muldoon confirmed to The Associated Press that an investigation will be held at the school's request, but had no further details.

At issue is the San Diego-area home's connection with businessman Michael Michaels, who reportedly attempted to steer Bush toward signing with San Diego agent David Caravantes, and sought to handle Bush's marketing with a new firm he had founded.

State records showed construction was completed on the home in early 2005 and Michaels purchased it for $757,500 in late March, Yahoo reported.

Neighbors told Yahoo that Bush's mother Denise Griffin, stepfather LaMar Griffin and brother Jovan Griffin moved into the home shortly after that.

NCAA rules prohibit student-athletes and their families from receiving extra benefits from agents or their representatives.

Bush eventually signed with a different agent and marketing firm.

Source: ESPN.com

[Walter Cronkite]

NFL Security says Bush victim of threats by agent

The NFL Players Association and NFL Security have concluded that sports agent David Caravantes and marketing company New Era Sports used an attorney to try and force USC running back Reggie Bush to pay them $3.2 million after Bush decided not to sign with the group, sources told ESPN's Joe Schad on Thursday.

According to the sources, Caravantes threatened to reveal embarrassing personal information about the Bush family if he did not receive the money. Sources also say Caravantes tried to evict the family from a San Diego house they rented from his business associate Michael Michaels.

Calls to the offices of Caravantes and New Era Sports were not returned on Thursday and several calls have not been returned this week.

The house rental is still the subject of an investigation by the NCAA and the Pac-10. Officials have contacted Bush's attorney and told him they will wait until after this weekend's NFL draft to conduct interviews on how payments were made on the house. Bush's family no longer lives there.

In an interview on ESPN on Monday, Bush did not get into specifics about the controversy but said, "when this is all said and done, everyone will see at the end of the day that we've done absolutely nothing wrong."

Also, a source close to Bush said NFL Security has contacted the top four teams in the NFL draft and told them Bush was the victim of threats.

An attorney representing Bush says that his client had no knowledge of an agreement between his parents and Michaels, the man who owned the $750,000 home the Bush family lived in for the past year.

Bush added that his "parents leased a house like any other parent." Bush declined to say who paid the rent.

Bush, the 2005 Heisman Trophy winner, chose to turn pro after his junior season with USC. He is expected to be the No. 1 pick in Saturday's NFL draft.

ESPN.com's Len Pasquarelli reported Thursday that talks between Bush's representatives and the Houston Texans, the team with the top draft pick, have stalled.

Source: ESPN.com

[Walter Cronkite]

Lawyer shares February letter with newspaper

The parents of Southern California football star Reggie Bush received $100,000 in cash from investors in a sports marketing company that hoped to sign the running back, an attorney for the investors said in a letter obtained by The San Diego Union-Tribune.

Meanwhile, the Los Angeles Times reported that when Bush signed with an agent who was not connected with the marketing company Bush's family was asked to return the money, and Bush himself sat in on a tense settlement meeting between his parents and company officials.

Attorney Brian Watkins told the Union-Tribune on Friday that Bush's parents, LaMar and Denise Griffin, asked for the money partly to resolve financial problems. Watkins said the money included an initial payment of about $30,000 to help start up the New Era Sports and Entertainment agency.

Watkins said the money was disbursed throughout 2005 and was given on more than one occasion at the home of Lloyd Lake, an investor in the company and a documented gang member. Watkins described him as a longtime friend of the Heisman Trophy winner.

Watkins described the $100,000 in disbursements in a letter dated Feb. 13 in which he asked David Cornwell, the Bush family's attorney, if USC should be included in settlement discussions.

"We would not object to their [USC's] participation as we understand their wanting to be involved due to the fact this matter was ongoing during their Championship season of 2004 as well as the entire season of 2005, and any lawsuit filed might have an adverse effect on them," Watkins' letter said.

USC spokesman Tim Tessalone said he was unaware of the letter and declined comment.

The content of the letter was reported hours after the Houston Texans, who have first overall selection in Saturday's draft, passed on Bush and signed North Carolina State defensive end Mario Williams.

Watkins said earlier this week that Bush's parents didn't pay $54,000 in rent during the year they lived in a house owned by a sports marketing agency investor who wanted to represent the football star.

Watkins said earlier this week that Bush's parents didn't pay $54,000 in rent during the year they lived in a house owned by a sports marketing agency investor who wanted to represent the football star.

The money dispute began after Bush signed with another agent and marketing representative, ending any chance of a deal with New Era.

Watkins told the Times that Bush personally tried to resolve the dispute, sending New Era an e-mail that said no one was trying to cheat them, then attending a settlement meeting several weeks ago that included his parents, Watkins and New Era representatives. Watkins said New Era representatives were searched for recording devices when they entered the meeting room.

Bush's mother and stepfather had agreed to pay landlord Michael Michaels $4,500 in monthly rent when they moved into the Spring Valley house Michaels bought for $757,000 in March 2005. Michaels said the Griffins told him they eventually would pay him rent from Bush's earnings when he went pro.

Also Friday, agent David Caravantes, who is under investigation by the NFL Players Association for his role in the housing arrangement, said he has had nothing to do with the Southern California star.

Caravantes told The Associated Press he is unaware of the investigation, adding: "I have had no involvement with Reggie Bush. The truth will come out."

Gene Upshaw, executive director of the NFLPA, confirmed Friday that the probe of Caravantes has begun.

Watkins, who represents Lake and Michaels, said Bush's family defrauded his clients out of $300,000 over 1½ years using "the carrot" of Bush's future football career as an enticement.

Bush, who signed with agent Joel Segal, said he believes the matter will be cleared up in a few weeks.

"I've got to get back to football," he said. "My life is parallel to a horse race. They have blinders on to keep them from being distracted in the race and keep them focused on winning the race. That's kind of like my life. Focus on the goal, not the things coming at me from the side."

Watkins sent the player's parents an eviction notice on April 3, and they moved out of the house last week. Bush has said his parents left because they found another place to live.

Watkins said he plans to file a fraud lawsuit against Bush's parents and possibly Bush.

Cornwell, the Bush family attorney, did not return phone calls to The Associated Press, but in an interview with the Times he accused New Era of trying to extort millions from Bush.

"We identified their scheme months ago and collected written evidence over the course of the months," Cornwell said. "And we provided that evidence to the NFL Players Assn. and NFL Security."

NFL spokesman Greg Aiello said in a statement Friday, "Based on the information presented by Reggie Bush's attorney, our office has advised the attorney to consider referring these matters to law enforcement authorities."

The NCAA is investigating whether the living arrangement violated rules prohibiting student-athletes and their families from receiving extra benefits from agents or their representatives.

Source: AP

[Walter Cronkite]

Bush attorney: FBI investigating sports marketing firm

The FBI has opened an investigation into a fledgling San Diego sports marketing firm that tried to recruit Heisman Trophy winner Reggie Bush, the attorney for the football star's family told The Associated Press on Wednesday.

Attorney David Cornwell of Atlanta said FBI agents interviewed him about "potential federal crimes" last week by phone. Cornwell said he intends to make Bush and his parents available to the FBI.

"They've asked now to interview Reggie and his parents," Cornwell said. "I intend to cooperate, yes."

April Langwell, an FBI spokeswoman in San Diego, said she could neither confirm nor deny any investigations.

The NCAA and Pac-10 are investigating whether any rules were broken when Bush's family lived in a suburban San Diego home owned by Michael Michaels, a principal in New Era Sports & Entertainment, while Bush was still playing for Southern California last season. The NCAA prohibits student-athletes and their families from receiving extra benefits from agents or their representatives.

Michaels and his partner, Lloyd Lake, a documented gang member serving time in prison, formed New Era late last year in the hopes of signing Bush to handle his marketing and bring aboard a San Diego agent to handle contract negotiations. Their hopes were dashed when Bush signed with another agent and marketing representative.

San Diego attorney Brian Watkins, who represents New Era, said in April he plans to sue Bush's parents for $3.2 million. Watkins said Bush's parents owed $54,000 in rent for the year they lived in Michaels' house.

"We have been contacted by the FBI to discuss the conduct of the individuals represented by Watkins," Cornwell said.

Reached by phone Wednesday, Watkins said he was unaware of the FBI investigation.

Bush and his family have so far declined to be interviewed by NCAA and Pac-10 investigators. Cornwell said they were unwilling to rovide information that could be used by Watkins but indicated he was willing to cooperate.

"The issue with the FBI is similar to the NCAA. I want to balance the cooperation with the FBI against my needs to protect my client's interest with regard to threatened litigation," Cornwell said.

Bush was expected to be the No. 1 overall pick in the NFL draft, but the Houston Texans bypassed him and took North Carolina State defensive end Mario Williams. Bush went to New Orleans with the second pick.

Before the NFL draft in late April, the league alerted some teams about a potential attempted extortion of Bush's family.

Source: ESPN.com