On March 21, 2011, Peake pled guilty to tax evasion, conspiracy to commit bank fraud, and conspiracy to commit wire fraud.  Based on his actions, which included the misuse of a $3.5 million commercial credit line from a former client, Peake could have received up to 10 years in prison.  As was reported last week by the Washington Examiner, Peake will serve time in prison, but it will be a 3 year sentence instead of the maximum of 10 years.

Peake grew up on the streets of northwest Washington D.C., and later became known for helping young athletes transition from the same streets to basketball courts and institutions of higher education.  It is rather unfortunate that someone who cares about helping disadvantaged children failed to pay his taxes and now ends up in prison for a few years.  No one is invincible; the IRS will eventually get you even if you escape their reach for a small amount of time.  As stated by U.S. Attorney Ronald C. Machen Jr.,

“Nathan Peake’s efforts at tax evasion were much less successful than the careers of the professional athletes he managed.  Today’s sentence sends the unmistakable message that everyone – especially those bringing in millions in income – must pay their fair share.”

Basketball Business Manager Gets 3 Years In Prison from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Yesterday, Peake pleaded guilty to tax evasion, conspiracy to commit bank fraud, and conspiracy to commit wire fraud.  He could receive up to 10 years in prison based on his actions, which included the misuse of a $3.5 million commercial credit line from a former client.

At one point in time, Nathan Peake was praised for his ability to promote Steve Francis’ strengths when there were a lot of doubters in Francis’ ability to play professional basketball.  This article provides a glimpse at Nathan Peake, the manager, and allows the reader to get an idea of where he came from, along with describing Peake’s friend and Francis’ agent, Jeff Fried.  Here is a small section of the piece:

The reselling of Steve Francis is a story of persistence and positioning by Jeff Fried and Nate Peake. They helped engineer the biggest trade in NBA history. They put Francis in the off-court money river. And they did it as an unorthodox pair: Fried, the 42-year-old white lawyer who came up poor in Coney Island, and Peake, 29, the African-American who came up tough on the streets of DC.

Nate Peake was coaching basketball at Langley Park Boys and Girls Club that summer. Seven years older than Francis, Peake was known for taking young athletes from the streets to courts and colleges.

Peake grew up on the streets of Northwest DC until his parents moved across the line to Hyattsville. His father, Ned, is a Vietnam veteran who was a master printer at the US Government Printing Office. His mother still works at the US Department of Education. Their home was always open to neighbors at a time when drugs and the go-go culture were beckoning young blacks. Peake’s father wound up raising more children than Nate and his brother and sister.

“It wasn’t until I’d grown up and left the house that I found out my father had saved his platoon and won a Purple Heart,” he says. “I realized that he was always giving something back, doing things for other people, so I tried to do the same.”

It seems that at some point in time, Peake thought he was above the law.  Here is to hoping that after he serves his sentence (if he serves any time) he comes back to help take young athletes from the streets to courts and colleges.

Steve Francis’ Manager Could Receive Up To 10 Years In Prison from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

First Round

1. Clippers - Blake Griffin PF/C – Agency: Excel Sports Management
2. Grizzlies – Hasheem Thabeet C – Agency: BDA Sports
3. Thunder – James Harden SG – Agency: Landmark Sports Agency
4. Kings - Tyreke Evans PG/SG – Agency: Wasserman Media Group
5. Timberwolves – Ricky Rubio PG – Agency: BEST
6. Timberwolves - Jonny Flynn PG – Agency: CAA
7. Warriors - Stephen Curry PG/SG – Agency: Octagon
8. Knicks - Jordan Hill PF – Agency: BDA Sports
9. Raptors - Demar DeRozan SG/SF – Agency: Goodwin Sports Management
10. Bucks - Brandon Jennings PG – Agency: BDA Sports
11. Nets - Terrence Williams SG/SF – Agency: Goodwin Sports Management
12. Bobcats – Gerald Henderson SG – Agency: Wasserman Media Group
13. Pacers – Tyler Hansbrough PF – Agency: Excel Sports Management
14. Suns - Earl Clark SF/PF – Agency: BEST
15. Pistons - Austin Daye SF/PF – Agency: BDA Sports
16. Bulls - James Johnson SF/PF – Agency: Wasserman Media Group
17. 76ers - Jrue Holiday PG/SG – Agency: BEST
18. Timberwolves – Ty Lawson PG – Agency: Peake Management Group
19. Hawks - Jeff Teague PG/SG – Agency: BDA Sports
20. Jazz - Eric Maynor PG – Agency: ASM Sports
21. Hornets - Darren Collison PG – Agency: BDA Sports
22. Trailblazers – Victor Claver PF – Agency: Wasserman Media Group
23. Kings – Omri Casspi SF/PF – Agency: CAA
24. Mavericks – B.J. Mullens C – Agency: ASM Sports
25. Thunder – Rodrigue Beaubois PG – Agency: Comsport
26. Bulls – Taj Gibson PF – Agency: Priority Sports
27. Grizzlies – DeMarre Carroll SF/PF – Agency: Priority Sports
28. Timberwolves – Wayne Ellington SG – Agency: Wasserman Media Group
29. Knicks – Toney Douglas PG/SG – Agency: FAME
30. Cavaliers - Christian Eyenga SG/SF – Agency: ASM Sports

Notes:

• Leading up to the draft, I really liked that Goodwin Sports Management was doing to get its clients connected on social networks.  My man Nate Jones, a law student at UCLA, has been doing a great job helping out Aaron Goodwin and Co. on publicizing GSM client Twitter accounts and setting up Rookie Chronicles.
• BDA Sports seems to have dodged any potential negative recruiting ramifications from the company’s involvement with the O.J. Mayo scandal.  Three BDA clients were taken in the top ten picks of the draft.  Four BDA clients went in the top fifteen.  Six in the top twenty-one!  Where WMG made the headlines last year, BDA definitely took over the 2009 draft.
• Speaking of WMG, the company had three players taken in the top sixteen picks.  And BEST had three guys selected in the top seventeen picks.  WMG still dominated with five total draft picks in the first round.
• The first Israeli player drafted was taken by the Kings.  The fairly new GM of the Kings is a friend, Jason Levien.  I am happy for him because I think Omri Casspi was a steal at the slot picked, and Levien is supporting the Jews!
• One of my favorite players in the draft, Toney Douglas, was taken by a team who I think will really benefit from drafting him.  Knicks fans should be happy with that pick.

2009 NBA Draft: Breaking Down The First Round from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Have anything to add or information about a change? Email me.

NBA Draft Signing Update from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Monta Ellis

If Monta Ellis is found to have participated in activity banned by his Uniform Player Contract, his contract could be terminated at worst (if it were a career ending injury), or at a minimum, may be fined or suspended by his team.

Paragraph 12 of the NBA Uniform Player Contract reads as follows:

12.OTHER ATHLETIC ACTIVITIES.
The Player and the Team acknowledge and agree that the Player’s participation in certain other activities may impair or destroy his ability and skill as a basketball player, and the Player’s participation in any game or exhibition of basketball other than at the request of the Team may result in injury to him. Accordingly, the Player agrees that he will not, without the written consent of the Team, engage in any activity that a reasonable person would recognize as involving or exposing the participant to a substantial risk of bodily injury including, but not limited to: (i) sky-diving, hang gliding, snow skiing, rock or mountain climbing (as distinguished from hiking), rappelling, and bungee jumping; (ii) any fighting, boxing, or wrestling; (iii) driving or riding on a motorcycle or moped; (iv) riding in or on any motorized vehicle in any kind of race or racing contest; (v) operating an aircraft of any kind; (vi) engaging in any other activity excluded or prohibited by or under any insurance policy which the Team procures against the injury, illness or disability to or of the Player, or death of the Player, for which the Player has received written notice from the Team prior to the execution of this Contract; or (vii) participating in any game or exhibition of basketball, football, baseball, hockey, lacrosse, or other team sport or competition. If the Player violates this Paragraph 12, he shall be subject to discipline imposed by the Team and/or the Commissioner of the NBA. Nothing contained herein shall be intended to require the Player to obtain the written consent of the Team in order to enable the Player to participate in, as an amateur, the sports of golf, tennis, handball, swimming, hiking, softball, volleyball, and other similar sports that a reasonable person would not recognize as involving or exposing the participant to a substantial risk of bodily injury.

The fact that Monta Ellis lied in the first place makes me doubt that he was partaking in one of the acceptable activities listed at the end of Paragraph 12.  The guy was definitely not playing handball.  Most likely, he was playing a pick-up game of basketball or playing a friendly game of football.  Additionally, Ellis will need to prove that whatever activity he was partaking in was one that a reasonable person would not recognize as one that may involve the potential of significant risk.  Good luck to Mr. Ellis and his agent.

Monta Ellis May Be On His Own Island from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules