Gatto agrees to pay resitution to KU, NC State, Louisville

Former Adidas executive James Gatto and his wife Rachel Gatto arrives to court in New York, Tuesday, March 5, 2019. Federal prosecutors have recommended multi-year prison sentences for Gatto and two other men convicted of fraud for channeling secret payments to the families of top-tier basketball recruits to influence where the players went to school. (AP Photo/Seth Wenig)
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(WIBW) -- James Gatto, a former Adidas executive, has agreed to pay nearly $350,000 to Kansas, Louisville and North Carolina State after being convicted on felony charges of wire fraud and conspiracy to commit wire fraud last October.

According to the Kansas City Star, the amount to be paid to KU "appears to be roughly $200,000 based on court documents filed Monday."

Gatto, former Adidas consultant Merl Code and former sports agent Christian Dawkins were the three men implicated in the college basketball corruption scandal which led to an FBI investigation last year. The trio was found guilty on all seven counts.

Gatto was the only defendant charged in connection with Kansas.

During the trial, former Adidas consultant TJ Gassnola testified he gave the mother of Billy Preston $89,000 to attend the University of Kansas for basketball. Preston later left KU due to eligibility concerns before ever stepping foot on the court.

The guardian of Silvio De Sousa also allegedly received illegal payments from an Adidas employee of $2,500. De Sousa was barred from playing for the Jayhawks this season due to the investigation, and later barred from playing the entire 2019-2020 season by the NCAA due to the institution's finding of improper benefits.

Kansas has since appealed the ruling.

KU's attorney, William Sullivan Jr., asked for over $1 million in restitution in a victim impact statement to U.S. District Judge Lewis Kaplan. The statement is dated Feb. 22.

The school asked for that amount to cover scholarships/financial aid for Preston and De Sousa; fees for responding to subpoenas; preparing KU senior director of compliance Jeff Smith as a witness in the federal trial; and legal fees for multiple investigations.

The exact restitution amount totals to $342,437.25, and will only cover legal fees and scholarship amounts for the schools.

Gatto and his attorney are appealing his October conviction. If overturned, Gatto may not be liable for restitution.