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yesterday

Justice Department Opens Criminal Inquiry Into Los Angeles Clippers

Brooklyn federal prosecutors have issued subpoenas in an early-stage probe that raises the possibility of criminal charges.

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An image collage containing 2 images, Image 1 shows Clippers owner Steve Ballmer introduces Kawhi Leonard and Paul George, Image 2 shows Kawhi Leonard of the Los Angeles Clippers holding a basketball
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Overview

  • Federal prosecutors in the U.S. Attorney’s Office for the Eastern District of New York opened the inquiry Thursday and have issued at least one subpoena as they examine the Clippers’ dealings related to Kawhi Leonard.
  • The probe follows an independent Wachtell Lipton review and the NBA’s Sept. 2 sanctions that fined the Clippers $30 million, stripped five first-round draft picks and penalized owner Steve Ballmer and other executives.
  • Investigators are focused on alleged off‑book endorsement and sponsorship deals with companies named in the league report — Aspiration, Daktronics, Boingo and Lockton — that the NBA said were used to route extra compensation to Leonard.
  • The SEC has sought records from Daktronics and the company says it is cooperating with regulators, while the Clippers have publicly rejected the NBA’s findings and are considering legal challenges.
  • The criminal inquiry adds a new layer of uncertainty to the paused trade sending Leonard to Toronto and could delay resolution if witnesses invoke legal protections or if charges are pursued.