Officials at the Iowa Division of Criminal Investigation lied to their own agents to push forward a controversial investigation into allegations of online gambling by University of Iowa and Iowa State University student athletes, a new court filing alleges.
The filing was made in the case of Iowa State wrestler Paniro Johnson, one of two dozen athletes and student managers to face charges in the major probe, which in addition to criminal charges has led to NCAA investigations and penalties. Johnson is charged with tampering with records and felony identity theft.
The investigations and charges have drawn criticism, including from the state’s then-top gambling regulator, who told a parent that “a lot of people don’t agree with how things were handled.”
Tuesday’s motion by Johnson’s defense attorney, Christopher Sandy, seeks records about possible misconduct by the investigators. According to Sandy, one of the agents involved early in the case has claimed he was misled by his superiors about the purpose and target of the investigation, and has subsequently refused to participate in the case.
Motion: DCI investigators told targets were sportsbooks, not students
Sandy in the motion cites the Jan. 19 deposition of DCI Special Agent Mark Ludwick. According to Ludwick, he and other agents were dispatched May 2, 2023, to interview a number of Iowa State students. Ludwick said Special Agent in Charge Troy Nelson briefed them that the investigation was “purely administrative” and the targets were online gambling operators like FanDuel and DraftKings.
Ludwick was assigned to interview Iowa State football player Isaiah Lee, and testified he assured Lee he was not a target of the investigation and didn’t face any consequences, leading Lee to tell him about his online gambling. Afterward, Ludwick said, Nelson “congratulated” him “for obtaining a confession.”
“Contrary to representations made to him and other Special Agents that morning, Special Agent Ludwick realized the purpose of the investigation was criminal in nature, with the sole targets being male Division I student athletes at the University of Iowa and Iowa State University,” Sandy wrote. “Special Agent Ludwick advised his superiors that he would no longer participate in the investigation, and requested reassignment.”
DCI accused of illegal searches
The news comes a day after defense attorney Van Plumb, who represents Lee and several other student athletes, accused DCI agent Brian Sanger of conducting a “warrantless” investigation into underage betting on the University of Iowa and Iowa State University campuses. According to a filing in Lee’s case, Sanger used software to check for underage betting at a University of Iowa dorm and athletics building, even though Sanger allegedly had no information about criminal activity there that would warrant such a probe.
After Sanger noticed that people opened online betting apps inside the dorm, according to the motion, his superiors rejected his request to investigate further. Sanger still allegedly probed the athletics building, as well. When the software revealed that people inside the building opened betting apps, according to the motion, Sanger’s bosses gave him permission to conduct a broader investigation.
Sandy’s motion Tuesday echoes that claim, saying Ludwick in his deposition testified he believed the DCI had conducted an illegal search of online account records without reasonable suspicion or obtaining a warrant to limit the search’s scope. Ludwick testified that “numerous” DCI agents have likewise refused to participate in what they believe is an illegal investigation.
The DCI did not respond to emails Monday and Tuesday seeking comment.
Plumb, in an email Tuesday, said the new motion has potentially wide implications.
“The assurances to Lee described in today’s motion can be characterized as a promise of leniency which will be litigated in court as to whether it was a violation of all the athletes’ constitutional rights,” Plumb wrote.
16 guilty pleas, seven cases pending
Prosecutors in Johnson and Story counties have charged 25 current or former Iowa and Iowa State athletes and student managers as a result of the investigation. Sixteen of those athletes have pleaded guilty, according to the DCI. Many of those athletes pleaded guilty to underage gambling, agreeing to pay fines of $645.
Seven cases are still pending. A judge dismissed one case, against Iowa State tight end Deshawn Hanika, after prosecutors missed a deadline to file their indictment. Prosecutors referred the last of those cases to juvenile court.
Defendants in the pending cases face charges of identity theft after they allegedly used other people’s online gambling accounts to place bets. In Johnson’s case, Sanger said, the wrestler placed about 1,300 bets for about $46,000 using another person’s account. Sanger said Johnson bet on 25 Iowa State games.
In the court motion that he filed Monday, Plumb wrote that Sanger targeted athletes to see whether they altered their performances to make money off wagers. Plumb wrote that the DCI searched “hundreds” of people’s phone activity records without a warrant as part of the investigation.
“There is a possibility that only high-profile athletes were targeted,” he added.
Tyler Jett is an investigative reporter for the Des Moines Register. Reach him at [email protected], 515-284-8215, or on Twitter at @LetsJett. He also accepts encrypted messages at [email protected].
William Morris covers courts for the Des Moines Register. He can be contacted at [email protected] or 715-573-8166.
This article originally appeared on Des Moines Register: DCI accused of more misconduct In Iowa sports gambling scandal