Federal officials add charges against sneaker exec Gatto

James Gatto, the longtime sneaker executive arrested in September as part of a major corruption case in college basketball, has been hit with additional charges by the U.S. Attorney for the Southern District of New York. Along with charges of wire fraud, Gatto — as well as fellow Adidas exec Merl Code and former runner Christian Dawkins — now faces charges of making payments to the families of six student-athletes in order to influence those athletes’ decisions about where they would attend college. Although the athletes are not individually named, according to the U.S. Attorney those athletes attended Louisville, Miami (Fla.), Kansas and North Carolina State. All those universities have major endorsement deals with Adidas, Gatto’s and Code’s former employer. The scandal that rocked college basketball in September has remained mostly quiet the last few months. Despite multiple reports about how the FBI’s investigation could and would dramatically alter the landscape of college hoops, March Madness went on as planned. With the exception of former Louisville coach Rick Pitino, no major figures in the game have lost jobs. Louisville and Miami were indicated as potential participants in previous reports. Kansas, a powerhouse that just made its 15th Final Four appearance, and N.C. State are newcomers to the scandal.