Nike Inc. is facing a probe from the U.S. Securities and Exchange Commission over illicit payments to elite youth basketball players, according to a lawyer for Micheal Avenatti, the lawyer facing trial for allegedly trying to extort millions of dollars from Nike, according to Bloomberg News.
Defense attorney Howard Srebnick disclosed the probe in his opening statement to a jury in Manhattan on Wednesday. He claimed the Justice Department, which started an earlier investigation of Nike and competitor Adidas AG, handed over evidence to the SEC.
A former Nike lawyer later confirmed the investigation in court testimony.
Under questioning by the prosecutor, Scott Wilson, who represented Nike in the talks with Avenatti and was the first witness in the overall case, said he believes the SEC investigation “is broader than just Nike,” according to the report.
Photo courtesy U.S. Securities and Exchange Commission
