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Federal Grand Jury Investigates Dodgers’ Finances Under McCourt Ownership


June 22, 2012
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Federal authorities have launched an investigation into the finances of the Los Angeles Dodgers, as well as other business enterprises, that were owned and operated by Frank and Jamie McCourt. The probe will explore the financial records of the Dodgers while they were under ownership of the McCourts, and sources close to the investigation say there is evidence of tax law violations, loan fraud, bankruptcy fraud and other improprieties. Sources, who have remained anonymous to protect the confidentiality of the probe during the grand jury investigation, told the Los Angeles Times that records have already been collected from the team and the McCourts. Documents surrounding Frank and Jamie McCourt’s divorce proceedings and the MLB baseball team’s subsequent bankruptcy are also expected to shed insight into the allegations of financial misconduct. The divorce documents reveal prolific spending on luxury homes, memberships and a six-figure hair stylist retained for the couple, according to The Associated Press. In addition, four of the couple’s sons were listed on the Dodgers’ payroll, despite one’s employment at Goldman Sachs and another son’s enrollment at Stanford University. During the divorce, Frank McCourt told the courts the couple failed to pay federal or state taxes between 2004 and 2009. Prosecuting authorities say the spending of team funds has raised questions and accuse Frank McCourt of using roughly $189 million of the Dodgers’ funds for personal purposes. However, attorneys representing Frank McCourt say their client is not the subject of a criminal investigation, but a series of standard audits that the Internal Revenue Service has been conducting for years, the AP reports. McCourt sold the team for $2.15 billion in May, but retained ownership of half the stadium parking lots along with the new owners.