Federal prosecutors have begun a criminal investigation into allegations that the Los Angeles Clippers circumvented the salary cap to pay Kawhi Leonard, according to Michael S. Schmidt, William K. Rashbaum, and Santul Nerkar of The New York Times.
The U.S. Attorney’s Office in Brooklyn is leading the probe, which is in its early stages, sources told Schmidt, Rashbaum, and Nerkar.
The investigation began before the NBA fined the Clippers $30 million and stripped them of five first-round draft picks after a nearly yearlong independent probe by the law firm Wachtell, Lipton, Rosen & Katz.
It’s unclear what possible crimes are being examined, but federal prosecutors have issued at least one subpoena as part of their investigation, Schmidt, Rashbaum, and Nerkar report.
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