By Jordan Kobritz
Major League Baseball has relied on the influx of Latin American talent to populate its teams for decades. In the past few years, accounts of how that talent makes its way from Caribbean countries to the Major Leagues have included the use of smugglers, drug dealers, dubious agents and assorted middlemen that would make produce award-winning Hollywood dramas.
Last year, a federal jury in Miami convicted an agent and a trainer of smuggling Cuban ballplayers into the U.S. Trial testimony included hair-raising tales of players’ journeys from Cuba, replete with midnight speedboat rides, threats of violence to themselves and their families, extortion, and glimpses into the Mexican underworld.
How much did MLB know about the illegal activity? According to statements by scouts and internal MLB and team memos, the answer is plenty. Now, according to reports in Yahoo Sports and Sports Illustrated, the government is turning its attention to bigger fish. A federal grand jury is investigating MLB’s international dealings, news which reportedly sent shock waves through the sport.
A grand jury probe is serious business, especially at the federal level given the unlimited resources of the government and the multiple agencies at their disposal. Grand juries decide whether probable cause exists to bring criminal charges and prosecutors are neither limited in the scope of their inquiry nor in the charges that may be brought. They can successfully prosecute defendants for crimes unrelated to the original purpose of the investigation.
Sources who spoke to Yahoo Sports and SI say the FBI and the Department of Justice are involved in the probe, which could lead down a number of avenues given MLB’s widespread footprint in Latin America. Subpoenas have been issued to club officials, agents and others who may have been involved in illegal activities related to violations of international signing rules. MLB has a history of infractions in this area and to its credit, has taken measures to punish violators and to deter future illegal activity.
In July 2016, MLB penalized the Boston Red Sox for rules violations by prohibiting them from signing any international amateurs for a year. In addition, five Boston prospects were declared free agents. Two months later MLB suspended San Diego Padres general manager A.J. Preller for 30 days for violating the same rules, although his violations were more egregious than those committed by the Red Sox. The violations occurred in 2014 while Preller was head of the Texas Rangers’ international scouting operations.
Last fall MLB took more extreme measures by banning former Atlanta Braves general manager John Coppolella for life after an investigation revealed the team had also run afoul of international signing rules.
Whether those actions will serve to insulate MLB against federal charges remains to be seen. The adage ‘where there’s smoke there’s fire’ would presumably apply here. The cases mentioned above are likely the tip of the iceberg, not only for MLB teams but agents and others connected to the seamy underworld of drugs, money, bribery, kickbacks and human trafficking that has historically permeated the movement of talent from Latin America to the Major Leagues.
Department of Justice lawyers who specialize in violations of the Foreign Corrupt Practices Act (FCPA) are rumored to be heading the investigation, which suggests bribery of foreign officials is an area of interest for the grand jury.
This isn’t the first time federal authorities have investigated MLB for criminal activity involving international signings. In 2008, the Chicago White Sox fired senior director of player personnel David Wilder and two scouts for skimming signing bonuses paid to Dominican prospects. The feds investigated the matter and ultimately Wilder plead guilty to mail fraud in 2013 and was sentenced to two years in prison.
The SI report singles out the Los Angeles Dodgers and the Braves as teams in the crosshairs of the DOJ investigation for allegedly violating the FCPA. Surely other teams have been or will be implicated as the investigation unfolds.
Could MLB executives end up in prison as a result of the current probe? Only time will tell, but the grand jury investigation has folks connected to baseball on edge, for good reason.
Jordan Kobritz is a non-practicing attorney and CPA, former Minor League Baseball team owner and current investor in MiLB teams. He is a Professor in the Sport Management Department at SUNY Cortland and maintains the blog, sportsbeyondthelines.com. The opinions contained in this column are those of the author. Jordan can be reached by email at jordan.kobritz@cortland.edu
