Former NBA, NFL players charged in tax fraud scheme

Wed May 25, 2016 5:29pm EDT
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By Gina Cherelus

(Reuters) - A former National Basketball Association player famed for delivering a devastating punch during a 1977 on-court fight has been arrested and charged with fraud in conspiracy with a National Football League Hall of Famer, U.S. prosecutors said on Wednesday.

A grand jury indictment alleges retired basketball player Kermit Washington, 64, defrauded donors, eBay, PayPal and the Internal Revenue Service for nearly three years by persuading people, including former professional athletes, to make donations to Project Contact Africa, a charity he had founded.

Ron Mix, a professional football Hall of Famer who played most of his career with the San Diego Chargers, pleaded guilty on Monday to one count of filing a false tax return in connection with the case, prosecutors said in a statement.

"Washington profited by diverting hundreds of thousands of dollars in donations that was supposed to benefit a clinic in Africa for needy families and children, but instead bankrolled his own personal spending," Tammy Dickinson, U.S. attorney for the Western District of Missouri, said in a statement.

An attorney for Washington, who was arrested on Tuesday, did not immediately respond to a request for comment.

Prosecutors say Washington was paid by Mix to refer professional athletes to his law firm.

Mix then filed workers' compensation claims on behalf of the athletes and, in exchange, made payments to Project Contact Africa and falsely claimed those amounts as charitable deductions on his personal tax returns, the statement said.

Mix faces up to three years in prison and a fine of $250,000.   Continued...