Gatto to pay back $342K to NC State, Kansas

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Tuesday, April 9, 2019

Former Adidas executive James Gatto has agreed to pay $342,437.75 in restitution to NC Stateand Kansas, identified as the "victim universities" in pay-for-play schemes to steer high-profile recruits to Adidas-sponsored college basketball programs.

The amounts includes legal fees of $79,026.75 for NC State and $161,574 for Kansas, as well as the repayment of scholarships for four players.

Attorneys for the prosecution filed notice of the agreement with the court on Monday.

Last month, Gatto was sentenced to nine months in federal prison after his conviction on felony charges of wire fraud and conspiracy to commit wire fraud.

He and two other men -- former Adidas consultant Merl Code and aspiring sports business manager Christian Dawkins -- were accused of funneling money from Adidas to the families of high-profile recruits to ensure the players signed with the sneaker company and certain financial planners and business managers once they turned pro.

The three are appealing.

Gatto, the sneaker company's former director of global sports marketing for basketball, also was accused of conspiring with former Adidas consultant T.J. Gassnola to pay $90,000 to former Kansas prospect Billy Preston's mother and $20,000 to current Jayhawks player Silvio De Sousa's guardian.

Gassnola testified during the trial that he also gave former NC State assistant Orlando Early $40,000 to secure the commitment of former Wolfpack star Dennis Smith Jr. after Gatto approved the payment.

Code and Dawkins are scheduled for a second trial at U.S. District Court in Manhattan on April 22 in a separate case involving alleged college basketball corruption.

ESPN's Mark Schlabach contributed to this report.