Gambling Indictment Announcement Summary

EVANSTON, Ill. - Federal charges were filed today (March 26) against two former members of the Northwestern men's basketball team, charging them with illegal gambling and point-shaving in early 1995. In a separate indictment, another former student was charged with illegal gambling activities.

Two other men not affiliated with Northwestern also were named in the indictments announced today by the U.S. Attorney's Office in Chicago.

The investigation leading to the indictments stemmed from an internal investigation at Northwestern in late 1994 into betting on football and basketball games by student-athletes. However, today's indictments went beyond that investigation, charging Northwestern students with conspiring to fix games.

Kenneth Dion Lee and Dewey Williams were charged with participating in a point-shaving scheme, in which they intentionally played poorly in an attempt to influence the outcome of three men's basketball games in early 1995. Lee was the second-leading scorer on the 1994-95 men's basketball team. He had been suspended from the basketball team for its first six games in late 1994 after he had admitted betting on other teams' football and basketball games.

Lee, who is cooperating with investigators, is expected to plead guilty to the charges in the near future.

Williams started all of the team's games in 1994-95. He had not been implicated during the course of the University's investigation.

A third player, Matthew Purdy, was named as an unindicted co-conspirator. He does not face any criminal charges.

According to information released today by the U.S. Attorney's Office, the players conspired to attempt to influence the outcome of games against Michigan, Wisconsin and Penn State in February and March, 1995. The charges state that the players were paid to play poorly in an attempt to make Northwestern lose by more than the point spread established by bookmakers. Persons with knowledge of the conspiracy then bet heavily on those particular games.

The other former student, Brian Ballarini, was charged with extortionate collection of credit, interstate transportation in aid of racketeering and using a telphone to transmit wagering information in interstate commerce. Ballarini had been questioned as part of Northwestern's internal investigation and withdrew from the University in December 1994. He allegedly was an on-campus bookmaker at Northwestern and threatened Lee with harm in regard to gambling debts owed by Lee.

Ballarini was a former member of the football team, but did not play in 1994 because of an injury.

The 1994-95 men's basketball team finished with a 5-22 overall record and a 1-17 record in Big Ten play.

Also named in the indictments were Kevin Pendergast and Brian Irving, both of California and not affiliated with Northwestern, for participating in the point-shaving.

Shortly after the U.S. Attorney announced the indictments, the University held a news conference. Statements were made at the news conference by Alan Cubbage, vice president for University Relations, and Rick Taylor, athletic director. Mike Weston, vice president and general counsel, who directed the 1994 internal investigation, also was at the news conference.

Statement by Alan K. Cubbage, vice president for university relations

These allegations are deeply disturbing and an embarrassment to Northwestern University. We attempt to instill in our students a respect for honor, an expectation of striving consistently for success, and a sense of responsibility to other members of the community. If these charges made today are indeed accurate, they represent a violation of all of those principles, something Northwestern cannot and does not condone.

In November 1994 the University administration learned of allegations that students were involved in gambling. Those allegations were investigated and in December 1994 the University announced the suspension of one football player for the final game of that season and one basketball player for six games. Another student, who today has been charged with taking bets, also was questioned as part of the investigation. That student withdrew from the University in December 1994.

The results of that internal investigation were turned over to the NCAA, the Big Ten and the U.S. Attorney's office, and indeed formed the basis for the investigation that resulted in today's indictments. We find it particularly troubling that these incidents are alleged to have occurred after our initial investigation and the disciplinary actions taken by the University. Northwestern has continued to cooperate with the U.S. Attorney's office as it developed its investigation over the past three years.

Northwestern, working with the NCAA and law enforcement officials, attempts to educate student-athletes about the dangers of gambling. We provide training sessions for all of our student-athletes, warning them of consequences such as you just heard about today.

President Bienen, who is out of town today, has been kept fully informed of these recent developments, just as then-President Weber was when Northwestern's investigation was conducted in 1994. President Bienen joins us in expressing his unhappiness and disappointment in regard to these allegations and the dishonor they bring to the University.

An incident such as this tests an institution. At Northwestern, we are fortunate to have an outstanding group of young men and women who succeed not only on the playing fields, but academically as well. This incident is an affront to both them and to the university.

Statement by Rick Taylor, director of athletics

I thought I would be standing here today putting to rest a three-year-old story about gambling. Closure, if you will, to old news.

We learned this morning, however, that the investigation we started in 1994 by self-reporting to the NCAA an on-campus, student-run gambling operation has taken a new turn with allegations of point shaving.

Although I have not, do not, and will not condone sports gambling, I can, to an extent, understand it as a societal issue. Today's college student has grown up in an environment which is desensitized to gambling. Sports pages list betting lines, churches sponsor bingo, states run lotteries, and millions of people bet at state-licensed casinos.

Point shaving, as alleged, is vastly different; it, purely and simply, is betrayal. Betrayal of self, teammate, family, coaches, university, and the very game itself.

It is, indeed, a slippery slope from the so-called "innocent" wager to getting in over one's head. There are no circumstances, however, that excuse influencing the outcome of a sporting event in a negative manner. This should be a lesson to us all that the problem is endemic, not isolated.

We have enhanced our gambling education program, admittedly after the 1994 self-report to the NCAA. We - all of the institutions which make up the NCAA - have to do more now. Yes, we have to educate, but we also have to get our collective heads out of the sand and work with local and federal law enforcement to proactively eliminate gambling from college campuses.

We also need to hold accountable and responsible those students, athletes and nonathletes alike, who gamble. Right now the lure of quick money supersedes the fear of getting caught. Only when that situation is reversed and the threat of no further education or athletic competition overwhelms the temptation to gamble will we succeed.

If there is a saving grace to any of this it is the way the University reacted upon what it knew quickly and without restraint. Under the presidential leadership of Arnold Weber and, subsequently, Henry Bienen, our charge was to get to the bottom of this and let the chips fall where they may. We conducted a thorough investigation and handed the material over to the Big Ten, NCAA, and US Attorney's Office in a timely manner. That our efforts led to us standing here today provides little solace. That no one connected to our current team is involved, or the fact that NCAA sanctions do not, repeat do not, loom are worth remembering, but do not make standing before you any easier.

We will survive this, but we will not forget it.

It is important to note that the allegations noted today are over three years old, and that our basketball squad and staff have turned over completely with the exception of two players, one of whom did not compete in 1994-95. Therefore, we are requesting that our current players and coaches in all sports not be interviewed. Thank you.