Announcement

**Jeff** · 03-22-2002, 09:00 AM

part 2

"Chris wasn't living any extravagant lifestyle when he was attending college, or even before college," said Erwin, a Detroit attorney and consultant to Webber.

Erwin wondered whether the government would try to reclaim the money from Webber if Martin is convicted. Collins wouldn't comment on whether the loans have been repaid.

Traylor, whose team was in Orlando on Thursday night, declined to comment. Bullock, Taylor and Webber could not be reached.

U-M banned Martin in 1997 from associating with its athletic teams. However, the federal indictment alleges that Martin continued giving money to Taylor through January 1998, to Traylor through September 1998 and to Bullock through April 1999.

Mark Kroczynski, a criminal investigator with the Internal Revenue Service, declined to comment on whether the players are free and clear with the IRS. He said the IRS was interested in the case because Martin used banks to conceal profits from his gambling operation.

Bell said an investigation into whether the players reported the loans properly to the IRS is open.

"They are cooperating," he said.

All four former players and former coach Steve Fisher, who was fired in October 1997, testified during grand jury proceedings that lead to Thursday's charges.

Steve Fishman, a Detroit attorney who represented Taylor and Bullock, said his clients never denied to federal authorities that they accepted loans.

"They've testified truthfully," he said. "If they're called to testify again, they will tell the truth."

Gambling's role
Collins described Martin as the "house" in his gambling business.

He said most of the bettors wagered on credit and settled up weekly with associates who worked for Martin.

Martin provided people with fax machines and gave them instructions to fax the daily wagering action that they wrote to his house on Fairway in Detroit, according to the indictment.

Martin, his wife and Malvo are each charged with one count of conspiring to engage in an illegal gambling business. The charges carry a possible 5-year prison sentence for each and fines of up to $250,000. Eddie Martin faces seven other charges, including money laundering, which is punishable by up to 20 years in prison and a fine of up to $500,000. Malvo, who appeared for arraignment Thursday without an attorney, was released on a $20,000 personal bond.

FBI agents seized gambling and financial records and cash while raiding Martin's home in 1999. They also raided the home of his son, Carlton Martin, and the homes of several alleged associates. Agents recovered more than $150,000 in the raids.

Carlton Martin was sentenced to 18 months after pleading guilty in September 2000 to federal gambling charges.

The impact on U-M
In Ann Arbor on Thursday, reaction to Eddie Martin's indictment ranged from relief to concern.

Marvin Krislov, U-M general counsel, pledged continuing cooperation with federal authorities and the National Collegiate Athletic Association, which oversees college sports regulations. Because U-M lacked subpoena powers, Krislov said, the university was limited in what it could learn from its inquiries.

U-M basketball coach Tommy Amaker pledged to move forward.

"We have been made aware of today's developments," Amaker said in a statement. "As far as we are concerned, these matters are in the past. We are committed to building the Michigan basketball program the right way."

Rich Rogel, cochair of an upcoming fund-raising campaign at U-M and a major donor, said the indictment will help to put the Martin issue to rest.

"The Ed Martin investigation may have affected basketball recruiting, but not fund-raising," Rogel said.

Larry Deitch, chairman of the U-M Board of Regents, and Interim U-M President Joe White declined to comment.

Collins said Martin laundered money from the gambling operation through loans to Webber, Taylor, Traylor and Bullock, the purchase of a 1994 Mercedes Benz, third-party checks and draws against a home-equity line of credit.

The indictment noted that telephone calls had been intercepted in March and April 1999.

Among the people whose numbers were cited was a man named Collins Pack, an 84-year-old retired millwright from Detroit, who described himself as one of Martin's best friends. He denied any involvement in the gambling ring.

"He's a giver, not a taker," Pack said. "He'd give you the shirt off his back."

U-M began investigating Martin after Taylor wrecked his new Ford Explorer around 5 a.m. on Feb. 17, 1996, while returning to Ann Arbor from Detroit with Traylor, Bullock and otherU-M team members, and Mateen Cleaves, a recruit. Cleaves later played at Michigan State University.

The athletes had gone to visit Martin that night and attended a party at a downtown hotel where strippers were on hand and alcohol was present.

Martin came under scrutiny in the months that followed. It turned into a lengthy NCAA inquiry -- and caught the attention of federal authorities -- after the Free Press reported the alleged financial dealings in 1997.

Martin, who has described himself as a basketball fanatic, developed a close relationship with many college-bound players over the years, in particular athletes from the Detroit area who enrolled at U-M.

At the height of his involvement with players, Martin claimed a 1995 income of $24,220 -- while secretly living a lavish life, authorities said.

Two years later, when he was banned from involvement with Wolverine athletics, university officials hoped it would the last they would hear of the man who had gained back-stage access to one of the most celebrated teams ever to play college basketball.

Maybe now, fans said Thursday, the last chapter is finally being written.

"Thank God it's finally come to a head," said William Crawforth, an Ann Arbor attorney and longtime fan of U-M sports. "It's been a cloud over our program for a long time."

Contact BEN SCHMITT at 313-222-6597 or [email protected].

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UM Gambling scandal

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