An Adidas Employee Is Allegedly Involved in a College Basketball Bribery Scandal

Adidas' head of global sports marketing has been charged with four counts of fraud and money laundering.
By Daniel Kuhn ,

Adidas' (ADDYY) head of global sports marketing, James "Jim" Gatto, allegedly bribed high school basketball players to commit to Adidas-sponsored universities. In a complaint filed in Southern District of New York, the FBI alleges that Gatto was involved in "making and concealing" payments of up to $250,000 to the families of two prominent high school basketball players. 

Gatto has been charged with four counts of fraud and money laundering. In addition, 10 college basketball officials, including the NCAA coaches at Oklahoma State University, Auburn University, the University of Arizona and the University of Southern California,  have been arrested in connection with the case.  

While Adidas was not named in the official complaint, Gatto's position with the company was confirmed via his LinkedIn account. 

Adidas shares slumped after news of the arrests broke with the stock down 2.74% in early afternoon trading. 

Stick with TheStreet for more on how the investigation will impact Adidas' drive into the U.S market. 

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