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Leagues and Governing Bodies

MATHIS' ATTORNEY SAYS MORE NBA REFS TO GET IRS INDICTMENTS

          More indictments of NBA referees are "anticipated" for
     tax evasion "stemming from the reimbursement of on-the-job
     travel expenses," according to a report by Mark Asher of the
     WASHINGTON POST.  Terry Grady, attorney for ref Mike Mathis,
     who was indicted Wednesday, said that there may be "as many
     as" 15 refs who could be charged.  So far, three have been
     indicted.  Grady: "I don't know what the government is going
     to do, but I believe there are still that many being
     considered."  Asher notes that as part of the NBA's CBA, the
     league "permits the referees to travel first class on
     flights scheduled for longer than two hours.  However, the
     labor contract allows the referees to downgrade the tickets
     and keep the money saved.  The referees are required to
     submit receipts to the NBA, so the league can report
     additional income to the IRS.  In all three indictments, the
     government charges that the referees submitted bogus
     receipts to the NBA."  In the case of Mathis, the government
     said he failed to include approximately $69,000 as taxable
     income in his returns for the years '89-92.  Grady said his
     client did not attempt to defraud the government.  The
     indicted refs will still be paid by the NBA, which has had
     no further comment.  Refs Union head Fred Slaughter: "We are
     just disappointed it couldn't have been resolved in a manner
     other than criminal indictment" (WASHINGTON POST, 2/21).

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