Reply:
United States v. Walters
997 F.2d 1219
Facts: Defendant, Norby Walters was an entertainment agent who designed a scheme which involved him having college athletes sign contracts saying Walters would be their agent should they make it to the professional league. Walters provided the athletes with money and cars in return. He was not a registered athletic agent. The NCAA does not allow college athletes to have an agent and Walters was fully aware of that. Being that this scheme violated NCAA rules and eligibility status, Walters dated the contracts for the end of the athletes’ eligibility period. (students all signed before the eligibility period.) This would allow the athletes to continue playing for the university.
56 out of the 58 athletes did not hold up their end of the contract and kept the money, the cars and signed with other agents. The athletes ended up scamming him. He trusted that the contract would see his plan come to fruition. Because of this Waltes began to physically threaten the athletes and told one athlete that he would break his legs before going pro. He demanded all the money back. During all this Walters did not know that the university was sending out the fraudulent eligibility form to the Big Ten.
The United States (plaintiff) indicted Walters and Lloyd Bloom, his business partner, with conspiracy and mail fraud. The US Courts of Appeals re-tried the defendants and Walters entered a plea agreement and the conspiracy charge was dismissed. The prosecution felt that when the athletes’ signed eligibility forms that were sent to the Big Ten this was grounds to convict Walters of mail fraud but the conviction didn’t stick because, 1. He himself didn’t mail the forms, 2, for mail fraud he would have needed to gain money or property through the mail system
Issue: Was mail fraud the right conviction for Walters?
Holdings: No, mail fraud was not the right conviction for Walters.
Rational: Walters violated the Uniform Athlete Agent Act. The NCCUSL developed a uniform statute for regulating sports agents. The purpose of the UAAA is to protect student athletes from unethical and dishonest agents. Where Walters failed is that the UAAA requires that all agents submit a written notice to the institution when a student athlete signs a contract before their eligibility expires. He did not notify the school that the athletes signed contracts. Being that he also changed dates on forms, gave them money and had the intent to fraud violates the UAAA. This act is used to control the corruption of agents. Also Walters was an entertainment agent, not a sports agent. Under UAAA he is mandated to provide a professional and criminal background. This information allows for the students, parents, and the institution to review him before working with the athletes. He did not do this.
Important information: Some states are increasing the penalties if found guilty. Arkansa and Oklahoma have a $250-500,000 penalty along with jail time. The protection of student athletes is very important when it comes to contracts and without these laws a sneaky agent can ruin their life/career
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