announced its penalties last week<\/a>, which included a $30 million fine, the loss of five first-round draft picks, yearlong suspensions for team owner Steve Ballmer and President of Business Operations Gillian Zucker, and a six-month suspension for President of Basketball Operations Lawrence Frank.<\/p>\nThe NBA-hired law firm of Wachtell, Lipton, Rosen & Katz and Commissioner Adam Silver concluded that the team had engaged in a wide-ranging effort to break its rules. The findings were released on Sept. 2.<\/p>\n
\u201cThe investigation found a pattern of misconduct and multiple significant rules violations by the Clippers organization, a prior offender of the salary cap circumvention rules,\u201d the league statement said.<\/p>\n
It\u2019s unclear exactly what the inquiry is targeting, The Times said. Prosecutors have issued at least one subpoena as part of the investigation. John Marzulli, a spokesman for the U.S. attorney\u2019s office, declined to comment.<\/p>\n
According to The Times, it was uncertain whether the investigation would lead to criminal charges or be presented to a grand jury.<\/p>\n
The federal inquiry is believed to be centered on the secret endorsements Leonard signed with three sponsors and whether Ballmer and Zucker helped facilitate the deals as a way of compensating the star player outside the salary cap.<\/p>\n
Ballmer, who has maintained his innocence, has said he wants to fight the allegations in a potential lawsuit against league.<\/p>\n
In a letter to Silver, Ballmer\u2019s attorney David Kelley called the investigation last week a \u201cwitch hunt\u201d and said Silver broke his promise that the league would have to prove any violation with real evidence.<\/p>\n
\u201cWe are exploring every legal remedy to address this gross injustice,\u201d Kelley wrote.<\/p>\n
The Clippers also rejected the NBA\u2019s findings, calling it a \u201cbiased investigation,\u201d adding in their statement that what the league said privately didn\u2019t match what it announced publicly.<\/p>\n
The federal inquiry compounds an already complicated situation.<\/p>\n
The trade that would send Leonard to the Toronto Raptors in exchange for Brandon Ingram, Gradey Dick and a host of draft picks, is in limbo. The deal, which was paused by the Raptors until the initial investigation was over, has not been completed, leaving the players and teams unsure where they will be when training camps open on Sept. 28.<\/p>\n
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