Case 1:17-cr-00686-LAK Document 136 Filed 04/10/18 Page 1 of 2

U.S. Department of Justice

[Type text]
United States Attorney
Southern District of New York

The Silvio J. Mollo Building

One Saint Andrew’s Plaza
New York, New York 10007

April 10, 2018

BY ECF

The Honorable Lewis A. Kaplan

United States District Judges
Southern District of New York
Daniel Patrick Moynihan U.S. Courthouse
500 Pearl Street
New York, New York 10007

Re: United States v. James Gatto et al., (S1) 17 Cr. 686 (LAK)

Dear Judge Kaplan:

The Government writes to inform the Court that, this afternoon, a grand jury returned a
superseding indictment in the above-captioned case, S1 17 Cr. 686 (LAK) (the “Superseding
Indictment”). A copy of the Superseding Indictment is attached hereto.

The Superseding Indictment adds no additional defendants or legal theories but expands
the scope of the conspiracy alleged in Count One to include alleged payments to the families of
student-athletes in connection with their commitments to attend four different universities – two
of which were not referenced in the original Indictment – all of which were sponsored by the
same global athletic apparel company, identified in the Superseding Indictment as “Company-1.”
The alleged objects of the conspiracy remain the same, namely, to defraud the victim-universities
by (1) causing them to issue athletic scholarships under the false pretense that the student-
athletes receiving this athletic based financial aid were eligible to compete in NCAA athletics,
and (2) depriving those universities of their right to control their assets while further exposing
them to the risk of tangible economic harm in the form of NCAA fines and penalties, among
other things.

Additionally, the Superseding Indictment adds two substantive wire fraud counts based
on the same conduct. In particular, Count Two alleges that the defendants engaged in a scheme
to defraud the University of Louisville by making and agreeing to make a $100,000 payment to
the family of a student-athlete in connection with that student-athlete’s commitment to attend the
University of Louisville, alleged conduct which was included in the allegations in the original
Indictment. Count Three alleges that defendant Gatto alone defrauded the University of Kansas,
by making and agreeing to make approximately $90,000 in payments to the family of a student-
athlete in connection with that student-athlete’s commitment to attend the University of Kansas,
alleged conduct that is new to the Superseding Indictment. Finally, the Superseding Indictment
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contains a number of modest additions and revisions throughout intended to reflect, among other
things, additional information learned since the time the original indictment was obtained.

While the filing of the Superseding Indictment will not necessitate substantial additional
discovery, the Government will make an additional production this week to the defendants
principally consisting of documents obtained from or otherwise relating to the universities and
student-athletes who were not a part of the original Indictment. There are no new recordings,
wires, or applications.

Finally, the Government respectfully requests that the Court schedule an arraignment of
the defendants on the Superseding Indictment at the Court’s convenience.

Respectfully submitted,

ROBERT S. KHUZAMI
Attorney for the United States, Acting Under
Authority Conferred by 28 U.S.C. § 515

By: /s/
Edward B. Diskant/Noah Solowiejczyk/
Eli J. Mark/Aline Flodr
Assistant United States Attorneys
(212) 637-2294/2473/2431/1110

Cc: Defense counsel (by email)

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