Lawyer: Bush's parents got cash
Investors allegedly paid them $100,000 By Brent Schrotenboer
STAFF WRITER
April 29, 2006
Reggie Bush's parents received more than $100,000 in cash disbursements since late 2004 from investors in the sports marketing agency that sought to represent their son, according to a letter written by the investors' attorney to the Bush family. Attorney Brian Watkins said yesterday Bush's parents, LaMar and Denise Griffin, asked for the money in part to resolve financial problems. Watkins said that sum included an initial payment of about $30,000 to help start up the agency, New Era Sports and Entertainment.
Watkins also said the money was disbursed throughout 2005 and was given on more than one occasion at the home of the Lake family, whose son, Lloyd, was an investor in New Era.
In the letter dated Feb. 13, Watkins asked David Cornwell, the Bush family's attorney, if he wanted to involve USC in settlement discussions.
“We would not object to their (USC's) participation as we understand their wanting to be involved due to the fact this matter was ongoing during their Championship season of 2004 as well as the entire season of 2005, and any lawsuit filed might have an adverse effect on them,” the letter from Watkins stated.
USC spokesman Tim Tessalone said he had no knowledge of the letter and could not comment.
Angie Cretors, the NCAA's assistant director for Agent, Gambling and Amateurism Activities, is expected to be in San Diego to investigate the case early next week, according to travel records. USC referred the matter last week to the Pac-10 Conference for investigation.
It is a violation of NCAA rules for student-athletes or their relatives or friends to receive extra benefits from prospective agents. If an athlete or his family commits such a violation, the athlete would be ruled ineligible, even if it's retroactive. USC could face sanctions, including possible forfeiture of games.
Cornwell has not returned several phone messages seeking comment. Bush's marketing representative, Mike Ornstein, also did not return messages. The Bush family could not be reached for comment in New York, where Bush, the Heisman Trophy-winning running back, is expected to be a high pick today in the NFL draft.
Watkins represents Lake, a former Helix High basketball player now in federal prison, and Michael Michaels, the owner of the 3,002-square-foot Spring Valley house Bush's parents lived in for the past year before moving out last week. Michaels said Thursday that LaMar and Denise Griffin failed to pay $54,000 in rent for the 12 months they lived in the house. Both Lake and Michaels were investors in New Era.
Michaels said when the Griffins ran into financial trouble, they told him they eventually would pay him rent owed when Bush started making money from his pro football career.
Watkins said his clients are seeking about $300,000 in “out-of-pocket” expenses, including the unpaid rent. They said they are planning a $3.2 million fraud suit against the Bush family. Because it's a fraud case, punitive damages are 10 times the compensatory damages of about $300,000, Watkins said.
The disagreement began after Bush decided to go with a different agent (Joel Segal) and marketing representative (Ornstein), killing the possibility of a deal with New Era.
A press release issued by Watkins' firm yesterday said Bush's parents “defrauded our clients out of large sums of money by holding the carrot of Bush's future football career in order to entice our clients to invest in their sports and entertainment company.”
Griffin was to be an owner in New Era, Watkins said. Griffin “targeted Mr. Michaels in Michaels' box suite, as a financier to invest money after a Chargers football game in 2004,” according to the release.
It also stated, “As Mr. Griffin, Mr. Lake and Mr. Michaels began working on the technicalities of the company, ongoing meetings with Mr. Griffin began to reveal that Reggie's continued participation came with conditions. Mr. Griffin suggested that in order to 'keep them happy,' Michaels and Lake would have to help them with some of their personal problems.”
That included a $28,000 sum to help him “focus” on the enterprise, the release said.
“The whole reason why the Griffins met Michael Michaels was to do this business venture,” Watkins said.
Michaels said the fraud allegation is about getting his money back, and that he has no ill will toward Bush. If the NCAA determines Bush to be ineligible for 2005, his Heisman Trophy could come into question.
“I don't want the kid to lose his Heisman,” Michaels said. “He earned it just like I earned my money.”
In a related development, the NFL and its Players Association are investigating alleged improper activity by certified agent David Caravantes, and have yet to come to a conclusion, contrary to a broadcast report. Caravantes, who at one time was considered for New Era's position of chief executive officer, denies any wrongdoing.
Caravantes said he never officially joined New Era, never met Bush and only had an interview with his parents once. Watkins said Caravantes' role in this matter is mistakenly being mixed up with his own pending litigation against the Bush family, and that he does not represent Caravantes.
New Era approached him to join its group to help negotiate contracts, Caravantes said, but ultimately the deal fizzled.
“I'm squeaky clean,” Caravantes said. “I've never had allegations of doing anything wrong.”
Bush has denied any improprieties took place and promised details would emerge later that would clear up the situation.
