Goodson, coaches tied to subject of SEC, NCAA investigation

Former Gonzaga basketball player Demetri Goodson and current coaches Mark Few and Ray Giacoletti have ties with the subject of a current federal and NCAA investigation. The Securities and Exchange Commission was investigating financial adviser J. David Salinas for fraud when he committed suicide on July 17. Goodson played for the Houston Select AAU team Salinas founded and Few and Giacoletti had invested money that Salinas allegedly used as part of a ponzi scheme.

"Obviously this is a tragic event. I've known David and his family and invested with him for the past 22 years," Giacoletti said in a statement July 18. "My heart goes out to his family and friends. It is my understanding the matter has been referred to the Securities and Exchange Commission for investigation."

Few is one of several Division I basketball coaches to have invested with Salinas, who had Lute Olsen, Scott Drew and Billy Gillispie among his clients. These coaches have reportedly lost a combined $7.8 million from investments with Salinas, according to Sports Illustrated. On July 7, Salinas sent a handwritten note to the SEC admitting he was "fully responsible" for all transactions of his J. David group, according to bloomberg.com.

The NCAA announced July 20 that it is "actively looking into connections between the college coaches who invested money with David Salinas and the prospects from his summer basketball program who went on to play for them," according to CBSsports.com. Goodson is among at least 14 players from 1997-2011 who chose to play college basketball at a school where one of Salinas' clients coaches. These players include Cartier Martin (Kansas State, committed 2002) Jawann McClellan (Arizona, committed 2003) and Alonzo Edwards (Nebraska, committed 2006).

Several of the coaches who invested with Salinas met with a legal team from the National Association of Basketball Coaches on July 24. The meeting was held to make a unified case for return of investment money and discuss NCAA issues that could result from the ponzi scheme.