Nevin Shapiro Ponzi Scheme: New Scandal Brewing At University of Miami?

This season it seems almost weekly we hear about a college program having some sort of scandal, or some news comes out about a new NCAA violation.  This year no program has been immune Tennessee, Florida, USC, Georgia, and even Alabama has had incidents.  The truth of the matter is all of this is nothing new, at every major college football program underhanded things are going on.  Let's expand that and say almost every school has something improper in the NCAA's eyes going on, and the reason is because the NCAA rules create a system for abuse to happen.

The Miami Hurricanes have been off the radar for a long time, and there have been nothing but accolades coming out of Coral Gables.  In recent years the team had not reached the level that it was at years ago, but they were graduating players at a high rate and no one was getting in trouble.  Much to the pleasure of all the naysayers the Hurricanes were almost docile on the field, a far cry from the brash bravado that made them the most hated team in College football.

In recent weeks the Hurricanes self reported several text messaging infractions to the NCAA which seem like they will result in little to no penalty.  Now a former Booster is in hot water with the Securities and Exchange Commission, and he has hinted at alleged rules violations at Miami.  Is Nevin Shapiro going to take down the Hurricanes program with his allegations?

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Sources:

http://blogs.miaminewtimes.com/

http://money.cnn.com/2010/04/21/news/companies/ponzi_shapiro_sec/index.htm

http://blogs.suntimes.com/bears/2010/08/hester_among_those_mentioned_i.html

What We Know so Far.

This is Bernard Madoff not Nevin Shapiro

A University of Miami booster named Nevin Shapiro, was arrested for running a $900 million dollar Ponzi scheme, he bilked over 60 people out of the funds and took a healthy portion for himself.  The United States Securities and Exchange commission brought charges against him.

The University of Miami on their website called him an ardent, devoted, and intense supporter and named a student athlete lounge in his honor.

Shapiro accepted a plea deal on the charges, and his sentence has as of yet to be handed down although he is already in Jail.

Shapiro is writing a tell all book called "The Real U: 2001 to 2010. Inside the Eye of the Hurricane."
"I want to make the average fan aware of what really exists under that uniform," Shapiro told the newspaper. "They might be great players, but they're certainly not great people."

Shapiro has quickly become known as the Bernard Madoff of the South.

Alleged Links to Miami Football

Shapiro graduated from Miami Beach Senior High School, and loved the University of Miami athletic program despite not graduating from there.  He was a season ticket holder for University of Miami football, and apparently had a suite at Sun Life Stadium for University of Miami Football games. 

He donated various amounts of money to different Miami athletic programs including football.  These donations were legitimate, but unfortunately money he stole from people were part of the donated funds. He claims to know many former university of Miami football players, including Jonathan Vilma and Vince Wilfork.  It is unclear if this is true or not, but not beyond the realm of possibility considering the circles he traveled in.

He was known as “Little Luke” which is a reference to former Two Live Crew Rapper Luther Campbell.  Anyone around Miami football knows what Luke did to and for the program, and Shapiro relished the name. •Shapiro allegedly had close relationships with Kyle Wright, Robert Marve, Devin Hester, and Antrelle Rolle.  Allegedly man of the players he met at The U snubbed him when they went to the NFL, which upset him.

Failed Attempt At Entering The Sports Business

Shapiro allegedly wanted to start a sports agency representing players, and University of Miami Football Players were his primary target.  Some people thought Shapiro was legitimate because the University of Miami put his name on a building and spoke highly of him.

Shapiro wanted to become the sports agency used by Miami Hurricanes players, and allegedly spent a lot of time trying to get close to players.  None of the reports indicate if Shapiro gave them anything, but surely he is holding that information until his book is released.

Shapiro tried to get Luther Campbell and a few other people to get involved in the sports agency with him, but the idea never materialized because he could not get enough people on board with his sales pitch.

Shapiro Lived a Lavish Lifestyle

It is reported that Shapiro took $38 million dollars of the money he stole for himself to live and maintain an expensive lifestyle. Shapiro’s lifestyle included a $5 million home in Miami Beach, luxury cars, a $1 million boat, expensive clothes, high-stakes gambling, season tickets to premium sporting events and other entertainment, the complaint states.

Shapiro charged more than $640,000 of personal expenses to Capitol’s corporate American Express Centurion Card (commonly known as the black card), including $116,000 of charges a girlfriend incurred. Shapiro allegedly gifted a set of diamond encrusted handcuffs to Shaq, but Shaq denies ever receiving any such gift.

Relationship With Randy Shannon

Apparently Nevin Shapiro was not a big fan of current Hurricanes coach Randy Shannon.  Shapiro felt that Robert Marve was the better choice for the Hurricanes and was disappointed he left the program as he was not a fan of Jacory Harris.

Shapiro also felt that Randy Shannon should not have gotten a contract extension, and should have been let go by the team.  He reportedly canceled his season tickets when he received news of Randy Shannon’s extension. Shapiro also became angry with Randy Shannon because he would not return his phone calls.  Shapiro also attempted to get meetings with Shannon on several occasions, and was rebuffed there as well.  It seems like Shannon did the smart thing and kept his distance from this guy.

Shapiros Motives?

At this point Shapiro is behind bars, and will have his day in court soon.  The odd thing is Shapiro decided to take this time to announce that he is writing a tell all book about the UM Football Program. Shapiro claims that in the book he is going to reveal information that former University of Miami Football Players committed NCAA violations.

He alleges that the violations are major in nature, and that the government did not look into the allegations because it is not under their per view.  Shapiro seems to have a bone to pick with someone at the University of Miami.  Could it be Randy Shannon because he shunned him and would not let him get close to the program?

Ramifications For The Program

It is unclear what effect this is going to have on the Miami Football program, it seems like it may have little to no effect in the near future.  No names have come out, and right now only a rough time table can be theorized as to when all of this took place. 

Why would Shapiro want to hurt the program he claimed to love so much?  He claimed he bleeds orange and green, but now because his lavish way of life is over he decides to take down UM with him? If this is an attempt to get rid of Randy Shannon though shady tactics, then it has a low chance of success.  It seems to be the only logical reason, and if Shannon shunned him as it seems then that reinforces the fact that he is dedicated to running a clean program.

Questions To Ponder?

Is this in fact a feeble attempt to get back at Randy Shannon?

Are the allegations true?  If so what former Miami players could have been involved?

Is it safe to assume there are people like this that hang around every major college program?

Do you believe Shapiro, or is he just another person trying to sell a book?

If you believe Shapiro, why would the Miami players he had relationships with suddenly shun him when they made it to the NFL?

Needless to say, this will be interesting to watch and see where it goes.