UM Agrees To Repay $83K In Shapiro Bankruptcy Case
CORAL GABLES (CBSMiami/AP) - The University of Miami has agreed to repay back $83,000 to settle their obligations in the bankruptcy case of admitted Ponzi schemer and former athletics booster Nevin Shapiro.
Court records show the agreement between the school and bankruptcy trustee Joel Tabas was filed last week.
"The agreement was the result of a lengthy negotiation process and brings closure to the University's obligations in the bankruptcy case," Miami's general counsel office said in a statement, and Tabas affirmed that to be the case in an e-mail to The Associated Press.
The NCAA said in August that eight players would be suspended for either one, four or six games -- most got only one-game bans -- and that they and four others would have to pay back what they received from Shapiro, who claimed to give extra benefits to 72 players and football recruits during his time as a booster, along with contributions to the university's athletic department.
"This amount includes payment of $3,000 in penalties levied by the NCAA on 11 current student-athletes who received improper benefits from Mr. Shapiro," the university's statement said.
Shapiro said he gave athletes money, cars, yacht rides and other benefits from 2002 through 2010. He is serving a 20-year prison term for masterminding a $930 million Ponzi scheme, and involuntary bankruptcy proceedings to recover at least some of the money his investors lost were initiated in 2009.
The NCAA is expected to levy sanctions against Miami when its inquiry into the school's compliance practices concludes. Miami's football team did not make itself eligible for selection to a bowl game this season, a self-imposed penalty related to the NCAA investigation.
Previous court records show that Miami agreed in July 2010 -- more than a year before the full extent of Shapiro's claims were unveiled in a Yahoo Sports reports -- to repay $130,307 from debtors also involved in the bankruptcy proceedings.
According to the latest court documents, Tabas found "additional potential claims against the University and certain University prior and current athletes" after that settlement. The documents also show that the school and the trustee had some dispute about the new claims, but adds that the school believes resolving the matter is "in the best interests of all parties."
There is no known timetable for the completion of the NCAA inquiry.
(TM and © Copyright 2011 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2010 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
