ISU's Kevin Dresser on gambling investigation: “I knew it was a mess”
Iowa State's Kevin Dresser on gambling investigation: “I hope all these athletes at Iowa and Iowa State mislead Iowa State.”
Iowa Division of Criminal Investigation officials lied to their own agents to advance a controversial investigation into allegations of online gambling by student-athletes at the University of Iowa and Iowa State University, a new court filing says.
The lawsuit was filed in the case of Iowa State wrestler Paniro Johnson, one of two dozen athletes and student managers who were charged as part of the investigation, which has led to NCAA investigations and penalties in addition to criminal charges. Johnson is charged with tampering with records and aggravated identity theft.
The investigation and prosecution drew criticism, including from the state's then-top gambling regulator, who told one parent that “a lot of people don't agree with the way things were handled.”
The motion filed Tuesday by Johnson's defense attorney, Christopher Sandy, seeks records of possible misconduct by investigators. According to Sandy, one of the agents involved at the beginning of the case claimed that he was misled by his superiors about the purpose and objective of the investigation and subsequently refused to cooperate in the case.
Application: DCI investigators were told the targets were sports bettors, not students
Sandy cites DCI Special Agent Mark Ludwick's Jan. 19 statement in the motion. According to Ludwick, he and other agents were dispatched on May 2, 2023 to interview a number of Iowa State students. Ludwick said Special Agent in Charge Troy Nelson informed them that the investigation was “purely administrative” and that the targets were online gambling operators such as FanDuel and DraftKings.
Ludwick was assigned to interview Iowa State football player Isaiah Lee and testified that he assured Lee that he was not the subject of the investigation and would not face any consequences, prompting Lee to tell him about his online gambling . Afterward, Ludwick said, Nelson “congratulated him on obtaining a confession.”
“Contrary to the representations made to him and other special agents that morning, Special Agent Ludwick recognized that the purpose of the investigation was criminal in nature and that the only targets were Division I male student-athletes at the University of Iowa and Iowa State University “Sandy wrote. “Special Agent Ludwick informed his superiors that he would no longer be participating in the investigation and requested a transfer.”
A day earlier, DCI was 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 an “unwarranted” investigation into underage betting on the campuses of the University of Iowa and Iowa State University to have carried out. According to a filing in Lee's case, Sanger used software to search for underage betting at a University of Iowa dormitory and athletics building, even though Sanger allegedly had no information about criminal activity there that would warrant such an investigation.
After Sanger noticed people in the dorm opening online betting apps, his supervisors denied his request for further investigation, according to the motion. Sanger allegedly continued to investigate the athletics building. When the software revealed that people in the building were opening betting apps, Sanger's supervisors gave him permission to conduct a broader investigation, according to the motion.
Sandy's motion on Tuesday echoes that claim, saying Ludwick testified in his deposition that he believed the DCI conducted an illegal search of online account information without reasonable suspicion or obtaining a search warrant limit the scope of the search. Ludwick testified that “numerous” DCI agents also refused to participate in what they believed to be illegal investigations.
The DCI did not respond to emails seeking comment on Monday and Tuesday.
Plumb said in an email Tuesday that the new proposal has potentially far-reaching implications.
“The assurances to Lee described in today’s motion can be characterized as a promise of leniency that will be tested in court to determine whether it constitutes a violation of all of the athletes’ constitutional rights,” Plumb wrote.
16 guilty pleas, 7 cases pending in sports betting investigation
Prosecutors in Johnson and Story counties have filed charges against 25 current or former Iowa and Iowa State athletes and student managers as part of the investigation. According to the DCI, 16 of these athletes have pleaded guilty. Many of these athletes pleaded guilty to underage gambling and agreed to pay $645 in fines.
Seven cases are still pending. A judge dismissed a case against Iowa State tight end Deshawn Hanika after prosecutors missed a deadline to file their charges. Prosecutors referred the last of those cases to juvenile court.
The defendants in the pending cases are accused of identity theft after allegedly using other people's online gambling accounts to place bets. In the Johnson case, Sanger said, the wrestler placed about 1,300 bets totaling about $46,000 through another person's account. Sanger said Johnson bet on 25 games at Iowa State.
In the court filing Monday, Plumb wrote that Sanger specifically targeted athletes to see if they altered their performance to make money from betting. Plumb wrote that as part of the investigation, the DCI searched “hundreds” of people’s phone activity records without a search warrant.
“There is a possibility that only high-profile athletes were targeted,” he added.
Iowa State wrestling coach Kevin Dresser has harsh words for the gambling investigation
Iowa State wrestling coach Kevin Dresser was also asked about this week's developments in the state's sports betting investigation during a regularly scheduled news conference covering weekend games at Oklahoma State and Oklahoma.
Dresser, a vocal critic of the investigation since it began last summer, had a lot to say. Here's what he told a handful of reporters on Tuesday:
- “I've had to bite my tongue for a long time. I almost chewed it off.”
- “I am not surprised by what has come out in the last 24 hours. I knew from day one when my athletes called me in early May that the thing was a mess and I knew it was mismanaged and I knew it was mishandled. “I'm glad it's over now Light is coming and I hope all these athletes at Iowa and Iowa State take Iowa State to the cleaners. I really do.”
- “I think these athletes have served really harsh sentences in the NCAA world, probably harsher than I think they should have, but at the same time I don't want to dismiss or downplay the fact that they are acting under the NCAA rules in the gambling area have made mistakes.”
- “The way the process went, these children had no rights. Unfortunately, as a student-athlete you are proven guilty 99.9% of the time and then you have to prove your innocence.”
- “It's really hard to be a Division I athlete right now because you're immediately faced with the book – the media starts throwing the book and the DCI has given the media the ammunition to throw the book throw.”
- “They all served a harsh sentence. Look at the high school students who lost a year. Sure, we want to beat the University of Iowa, but what happened to those graduates at Iowa…their careers shouldn't have ended like this.”
- “There are people in Des Moines who need to answer some questions. If they try to pin it on a man – I don't know if I believe that. I think more people need to take responsibility for this.”
- “I’m glad it came to light. I'm glad these kids are getting some justice. There will be some checks written, probably big checks.”
The Register's Randy Peterson contributed to this report.
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 the Des Moines Register courts. He can be contacted at [email protected] or 715-573-8166.