USC Football Embroiled in Unemployment Benefits Investigation

Several USC players to be questioned under oath about suspended receiver Munir McClain

Ryan Kartje (LA Times)  —  Days after federal investigators first confronted USC athletes on campus, Munir McClain, the suspended Trojans wide receiver at the center of their probe, stood in front of cameras outside Galen Center, reading from a prepared statement that marked his first public comments since a September suspension from the football team escalated into a federal investigation.

As questions mounted over the nature of that suspension and the investigation that followed, McClain confirmed to a small crowd at a makeshift news conference Sunday that he did indeed apply for — and receive — Pandemic Unemployment Assistance and that he did so with the help of an employee at the California Employment Development Department.

“I believe that I did everything right,” McClain said.

Behind him, eight USC football players, including his brother, Trojans linebacker Abdul-Malik McClain, and senior wide receiver Tyler Vaughns, stood in quiet solidarity with the sophomore, wearing masks and USC athletic gear.

None of the players, including Munir, answered questions from the media Sunday. But in just more than a week, several USC players will be compelled to answer questions under oath about what they know about McClain, unemployment benefits and an apparent plan at USC that sparked an ethics complaint alleging that students were approached to fraudulently file for EDD benefits.

The Times obtained a copy of a subpoena given to one of those players, which states that the recipient is required to appear before a grand jury in conjunction with “an official criminal investigation being conducted by the Department of Labor, Office of Inspector General.” The subpoena is signed by Kerry Quinn, an assistant U.S. Attorney in the Major Frauds Section.

Najee Ali, a local civil rights activist who organized the news conference, said that USC and federal investigators were treating McClain “like he’s Michael Corleone, like he’s the Godfather, like he’s part of this criminal enterprise and they’re about to introduce the RICO act upon him.”

It’s unclear which players or how many were subpoenaed to testify before the grand jury, but the scope of the investigation appears to go beyond a single PUA claim.

“It’s now bigger than Munir,” Ali declared Sunday.

One of those players could be his brother, Abdul-Malik. On Tuesday, investigators came to the dormitory room shared by the brothers in search of Abdul-Malik. Asked on Sunday whether her oldest son also applied for unemployment benefits, Shan McClain said only, “I don’t want to answer that question.”

Several players recently held a team meeting in support of Munir, according to a person familiar with the meeting. Others who appeared at the news conference Sunday included offensive linemen Casey Collier and Courtland Ford, linebackers Spencer Gilbert and Elijah Winston, cornerback Adonis Otey and defensive lineman Jamar Sekona.

 

Local civil rights activist Najee Ali speaks at a news conference for suspended USC player Munir McClain, whose face is partially obscured by Ali. Abdul-Malik McClain stands to the left of his brother; Kumasi Simmons and Shan McClain stand to the right of Munir. Also pictured are USC players Tyler Vaughns (orange sweatshirt), Courtland Ford (black T-shirt) and Casey Collier (red sweatshirt). (Ryan Kartje / L.A Times)

In a university statement, USC said that “Coach Helton has told his team not to engage in rumors, to focus on football, and always to do the right thing.”

Helton is scheduled to speak with media members Monday morning.

A release announcing the news conference said it would be held “in support of Munir, in defiance of Clay Helton.” But that defiance dissolved — at least, publicly — Sunday.

“I think I misspoke,” said Ali, who wrote the release. “Ultimately, we’re not in defiance. We’re just trying to work in unity. I was emotional when I sent it out. I felt this young man has been wronged.”

Both Ali and Shan McClain remained steadfast in that belief. While neither criticized Helton, each took aim at USC for denying McClain due process and refusing to meet with Shan McClain or her legal counsel.

An Oct. 14 email from Ali shared with The Times and directed to USC chief of staff Brandon Sosna noted that “Shan and Munir have been given few details and are essentially in limbo due to the lack of communication from SC school officials.”

Ali also criticized USC for not providing subpoenaed players with legal counsel. But an NCAA bylaw limits universities from providing such counsel, unless the case involves matters of eligibility or something directly tied to athletic competition or practice.

“If Munir has done something wrong, please tell him what it is,” Shan McClain said. “If there’s something that’s gone wrong, is it USC’s way to just go against the football team? Is that your way? Or is there restorative justice? Do you get it right in-house first? Or do you just throw him away?”

Shan said USC has provided no answers to those questions. A university statement rejected that notion, stating that “USC has spoken about this matter with Munir McClain and his mother Shan McClain. We will not discuss those conversations out of respect for student privacy and due to the pending investigation.”

That investigation will soon be taken to a grand jury, where other Trojans athletes, quiet until now, will be compelled to share what they know about unemployment benefits and their own connections to the sophomore USC wide receiver who accepted them this past summer.

“He’s the victim here,” Ali said of Munir. “They need to understand that this is not how we treat members of the Trojan family.”

latimes.com

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Golden Trojan
Major Genius
Golden Trojan
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October 26, 2020 4:27 pm

If this was a mistaken Unemployment claim you pay the money back. Now they certainly could have been fed bad advice from EDD and it could have gotten to be a mess. If the FBI is involved, then something bigger is going on. As I mentioned on a previous post, my wife filed an unemployment claim instead of a disability claim due to bad advice from her doctor’s office. It took 9 months to get it squared away due to bad advice, incompetence and laziness at EDD and an Administrative Law Judge to give an official ruling. We paid the… Read more »

John Weld
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Noble Genius
John Weld
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October 26, 2020 4:46 pm
Reply to  Golden Trojan

Pandemic Unemployment Assistance (PUA) is different from regular wage based unemployment. PUA expanded the definition of eligibilty to include 1099 independent contractors and self-employed business owners. To be eligible you had to have had an established history of income and you had to fall into one of the 7 categories to indicate that you could not work because of COVID-19. People that qualified for this also eligible to receive an additional $600.00 (over and above the normal UI benefit) per week starting in April from the Federal government (this is why the FBI is involved). Munir claims that he was… Read more »

TrojanRJJ
Noble Genius
TrojanRJJ
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October 26, 2020 7:44 pm
Reply to  John Weld

John, Thanks for the cogent explanation. It now makes sense. I sure hope no other SC players are involved. My guess is it will turn on if Munir filed a 2019 tax return showing the income. And, who else applied from his address. I thought the initial explanation did not make a lot of sense.

Jamaica
Noble Genius
Jamaica
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October 26, 2020 4:15 pm

If a student-athlete is on a football scholarship and the college is having classes (even if they are webinar-zoom operated) and the football program is operating including the training table (even if operating in a safety bubble), why has this player applied & received unemployment benefits? Something smells here. Am I missing something?

gametv
gametv
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October 26, 2020 2:09 pm

If only we could get Helton embroiled in this mess and use it to fire him!

This might be related to whether the compensation from his self-employment was wages or profits, so whether he had paid payroll taxes on it in the past.

I thought the FBI was supposed to conduct investigations in private and then only let it hit the media if they file charges.

Honestly, I just LOATHE our government. Completely incompetent and corrupt to the core. Definitely not a government for and by the people.

LawyerJohn
LawyerJohn
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October 26, 2020 10:06 am

The EDD form that is used to apply for Pandemic Unemployment Assistance PUA) is ambiguous regarding the reason one is unemployed, although it has to be pandemic related. This kid will probably slide despite his fool of a lawyer, but SC cannot be involved with any improprieties, whether proven or not.

RialtoTrojan
Noble Genius
RialtoTrojan
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October 26, 2020 8:41 am

Oh please! The school isn’t the one causing the ruckus, the kid is. If he was truly unemployed as in laid off or fired due to the pandemic, that would be problematic due to the fact that student athletes are supposed to be unpaid. Unemployment insurance is paid from wages earned at a real job. Applying for it without having actually worked somewhere is fraud. If there were a real coach on campus this kid would have bought himself a whole lot of bench time because of his antics involving a mouthpiece. He is suspended due to actions he admits… Read more »

UtahTrojan
Noble Genius
UtahTrojan
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October 26, 2020 9:40 am
Reply to  Allen Wallace

USC has just become a lightning rod for everything.

TrojanRJJ
Noble Genius
TrojanRJJ
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October 26, 2020 2:37 pm
Reply to  RialtoTrojan

This is a mess. And, why are other players being subpoenaed? At least, SC is not the investigating power – it is the FBI. If all they are after is Munir and his claim, why involve other kids? This should be a very simple case, but it appears to have much more involved than just a kid selling high priced sneakers and then seeking unemployment insurance for losing the market due to Covid. As to the suspension, I have zero opinion. The fact the kid got SC involved in this would have been enough for me. Now, having gone public… Read more »