Report: USOC and others delayed in response to Nassar
By EDDIE PELLS
AP National Writer
Tuesday, December 11
DENVER (AP) — An independent report details a toxic pattern of bureaucratic paralysis among Olympic leaders who reacted slowly, if at all, after they knew Larry Nassar was suspected of molesting young gymnasts.
From the top office at the U.S. Olympic Committee to FBI bureaus in three cities to what was essentially an unchecked, rogue operation at the Karolyi Ranch in Texas, nobody stepped in quickly enough to stifle Nassar’s crimes, the report concludes.
That delay ultimately gave Nassar more than a full year to abuse athletes after the first allegations surfaced.
The USOC swiftly fired sports performance chief Alan Ashley in the wake of Monday’s release of the 233-page report from the law firm Ropes & Gray. One of its conclusions was that neither Ashley nor Scott Blackmun, who resigned in February as CEO of the USOC, elevated concerns about alleged abuse when they first learned of them from USA Gymnastics president Steve Penny in July 2015.
And an email from Penny notifying Blackmun and Ashley of Nassar’s decision to step down from his volunteer position at USAG in September 2015 — after allegations had surfaced but before they’d become widely known — was deleted from both executives’ accounts. The report suggests Blackmun was fearful his email system may have been vulnerable to Russian hacking.
“One thing we’ve learned from this experience is that these types of situations should be escalated,” said Susanne Lyons, a board member who served as acting CEO earlier this year. “Transparency is important.”
The report says the USOC, USAG, Michigan State and the FBI all failed to protect athletes. The failures led to a 14-month period — July 2015 to September 2016 — during which Nassar, while still employed at Michigan State, continued to molest young women.
“While Nassar bears ultimate responsibility for his decades-long abuse of girls and young women, he did not operate in a vacuum,” the report says. “Instead, he acted within an ecosystem that facilitated his criminal acts.”
Nassar is serving decades in prison on charges of child pornography and for molesting young women and girls under the guise of medical treatment; many of his accusers testified in heart-wrenching detail at his sentencing hearing in January.
The USOC commissioned the report shortly after the testimony. More than 100 people were interviewed, including some survivors of sexual abuse. But a sizable number of Nassar victims — including 180 being represented by attorney John Manly — refused to participate because Manly didn’t believe the report was completely independent of the USOC.
“That being said, it is a stinging indictment of the highest levels of the leadership of the United States Olympic Committee for their role in the cover-up (of) the largest sex-abuse scandal in the history of sports,” Manly said.
Among the conclusions:
— Blackmun didn’t report the allegations to either the USOC board or anyone on his staff. When asked about the Nassar case by chief security officer Larry Buendorf, who had received word separately from Penny, Blackmun told Buendorf he was aware of the issue but did not seek further guidance. Blackmun, who voluntarily answered questions for the report, explained he understood the seriousness of the Nassar allegations but because they involved an “insider” — Nassar was well-respected and had worked with USAG for nearly 30 years — the case was “especially sensitive.”
— While Penny repeatedly tried to get the FBI to investigate, one of his key objectives was to keep the allegations from spilling into the public, to avoid “sending shockwaves through the community,” as he said in a conversation with an FBI agent. Because of that, very few inside USAG knew the extent of Nassar’s crimes — a factor that curtailed efforts to control him.
— Despite Penny’s contacts with law enforcement, the report concludes “the investigation appears to have languished … for over seven months” in the FBI’s Detroit office. USAG later took the allegations to the FBI’s Los Angeles office, but not until the Indianapolis Star report detailing Nassar’s abuse came out in September 2016 did that office take action. Meanwhile, the report includes details of Penny meeting with an FBI agent, offering him help in getting a security job at the USOC.
—The Texas training center where much of the abuse occurred was run by Bela and Martha Karolyi, whose penchant for churning out gold medalists earned them virtual carte blanche without having to answer to parents, individual coaches, or USAG and USOC authorities. The harsh regimen they imposed left athletes afraid to report injuries and almost completely beholden to Nassar, who “had broad latitude to commit his crimes, far from the gymnasts’ parents and unimpeded by any effective child-protective measures,” the report said.
The backdrop of it all was a U.S. Olympic bureaucracy that had grown reluctant to police the sports organizations it oversaw. When Blackmun took over the USOC, its relationships with the national governing bodies were at a low point. He spent years trying to repair the relationships and the USOC “chose to adopt a deferential, service-oriented approach” to NGBs, according to the report.
“In this governance model, the USOC exerted its broad statutory authority and monetary influence over individual sports primarily for the purpose of encouraging success at the Olympic Games, effectively outsourcing any decisions regarding on-the-ground child-protective practices to the NGBs,” the report states.
That, in the minds of many of the survivors, was the most critical shortcoming: In short, the USOC valued medals over the athletes who won them.
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USA Gymnastics files for bankruptcy after sex-abuse scandal
By WILL GRAVES
AP Sports Writer
Thursday, December 6
USA Gymnastics is turning to bankruptcy in an attempt to ensure its survival.
The embattled organization filed a Chapter 11 bankruptcy petition on Wednesday in an effort to reach settlements in the dozens of sex-abuse lawsuits it faces and to avoid its potential demise at the hands of the U.S. Olympic Committee.
USA Gymnastics filed the petition in Indianapolis, where it is based. It faces 100 lawsuits representing over 350 athletes in various courts across the country who blame the group for failing to supervise Larry Nassar, a team doctor accused of molesting them. Nassar, 55, worked at USA Gymnastics and Michigan State University for decades. He is serving effective life sentences for child porn possession and molesting young women and girls under the guise of medical treatment.
Kathryn Carson, the recently elected chairwoman of USA Gymnastics’ board of directors, said the organization’s goal is to speed things up after mediation attempts failed to gain traction.
“Those discussions were not moving at any pace,” Carson said. “We as a board felt this was a critical imperative and decided to take this action.”
The filing does not affect the amount of money available to victims, which would come from previously purchased insurance coverage, she said. Carson said the insurance companies “are aware we’re taking this action and our expectation is they will come to the table and pay on our coverage.”
Carson added: “This is not a liquidation. This is a reorganization.”
John Manly, an attorney representing dozens of women who have pending lawsuits against USA Gymnastics, chastised the organization for continuing to “inflict unimaginable pain on survivors” and encouraged law enforcement officials to “redouble” their investigative efforts.
“Today’s bankruptcy filing by USA Gymnastics was the inevitable result of the inability of this organization to meet its core responsibility of protecting its athlete members from abuse,” Manly said in a statement. “The leadership of USA Gymnastics has proven itself to be both morally and financially bankrupt.”
USA Gymnastics insists that’s not the case, stressing that the filing is based on legal expediency, not fiscal distress.
While Carson acknowledged that sponsorship is down since the first women came forward against Nassar in the fall of 2016, she described the financial condition of USA Gymnastics as “stable.”
USA Gymnastics reported assets in a range of $50 million to $100 million and a similar range of liabilities, with 1,000 to 5,000 creditors. The organization said its largest unsecured creditor is former president and CEO Steve Penny, who is owed $339,999.96. USA Gymnastics is disputing Penny’s claim, though attorney Cathy Steege declined to get into the specific nature of the dispute.
Penny resigned under pressure from the USOC in March 2017. Two other presidents — Kerry Perry and former U.S. Rep. Mary Bono — have followed in what has become a revolving door amid the organization’s hierarchy.
It’s that chaos at the top that led the USOC to initiate the process of removing USA Gymnastics as the sport’s national governing body at the Olympic level — a step that’s taken only under the most extreme circumstances.
In an open letter to the gymnastics community in November, USOC CEO Sarah Hirshland said “you deserve better,” and that the challenges facing USA Gymnastics were more than it was capable of overcoming as currently constructed.
Carson said the legal maneuvering Wednesday delays the USOC’s efforts to strip its designation as a national governing body.
“We always have a dialogue going with them and intend to make it clear with them we have a lot to talk about and we want to keep that going,” she said.
USOC spokesman Patrick Sandusky said the committee is reviewing the filing’s potential effect on decertification. “Financial stability and viability are essential for a national governing body to operate in the best interests of the athletes,” Sandusky said.
USA Gymnastics believes bankruptcy protects it from having opportunities or assets taken away by a debtor. Carson acknowledged that being a national governing body “is a big part of how we raise our revenue.”
Carson, who replaced Karen Golz as chairwoman last week, said she accepted the position because she believes in the direction of USA Gymnastics, which she said doesn’t need money but rather time.
“We think we’re changing the dynamic and we certainly believe that we will try to remain the NGB,” Carson said. “To be clear, it is our lawyers’ firm belief that the bankruptcy will automatically stay (decertification) … and we will work with the USOC to regain credibility.”
Nicholas Georgakopoulos, a bankruptcy expert and law professor at the Indiana University’s Indianapolis campus, said USA Gymnastics is “hoping for a miracle” with its legal maneuvering.
“The USOC says you violated this relationship, here are the consequences and USA Gymnastics is saying it filed for bankruptcy, there are no consequences,” Georgakopoulos said. “This is like a gambling addict who goes to the casino and gambles every day and one day the casino says you can’t come anymore, you’ve lost too much, and addict says, I filed for bankruptcy, you can’t stop me from coming to the casino.”
If the USOC wants to go forward with decertification, it must now go to court.
USA Gymnastics has no timetable on how long the bankruptcy process will take and did not offer a ballpark on how much it expects to pay in settlements. Its doors, however, remain open for business.
“We are continuing to pursue all aspects of our current operating model,” Carson said. “This affords us an opportunity to reorganize as well as resolve the claims with the survivors.”
Associated Press writer Ed White in Detroit and AP National Writer Eddie Pells in Colorado Springs, Colorado, contributed to this report.
‘Truth isn’t truth’ tops list of notable quotes in 2018
Tuesday, December 11
NEW HAVEN, Conn. (AP) — The assertion that “truth isn’t truth,” made by a personal attorney for President Donald Trump, tops a Yale Law School librarian’s list of the most notable quotes of 2018.
Rudy Giuliani’s statement came in an August interview on NBC’s “Meet the Press” when he told host Chuck Todd that Trump might “get trapped into perjury” if he were interviewed in special counsel Robert Mueller’s Russia investigation.
When Todd replied: “Truth is truth,” Giuliani responded: “No, it isn’t truth. Truth isn’t truth.” Giuliani later explained he was trying to make the case that having Trump sit down for an interview with Mueller’s team wouldn’t accomplish much because of the conflicting nature of witnesses’ recollections.
It was one of several Trump-related quotations on the list assembled by Fred Shapiro, an associate director at the library. The yearly list is an update to “The Yale Book of Quotations,” which was first published in 2006. Shapiro chooses quotes that are famous or revealing of the spirit of the times, and not necessarily eloquent or admirable.
1. “Truth isn’t truth.” — Rudy Giuliani, interview on “Meet the Press,” Aug. 19.
2. “I liked beer. I still like beer.” — Brett Kavanaugh, U.S. Senate Judiciary Committee testimony on his Supreme Court nomination, Sept. 27.
3. “While all pharmaceutical treatments have side effects, racism is not a known side effect of any Sanofi medication.” — Sanofi drug company, in a tweet responding to Roseanne Barr’s blaming of their product Ambien in explaining a tweet that led ABC to cancel her show, May 30.
4. “We gather to mourn the passing of American greatness, the real thing, not cheap rhetoric from men who will never come near the sacrifice he gave so willingly, nor the opportunistic appropriation of those that live lives of comfort and privilege while he suffered and served.” — Meghan McCain, eulogy for John McCain, Sept. 1.
5. “We’re children. You guys, like, are the adults. You need to take some action and play a role. Work together, come over your politics and get something done.” — David Hogg, a survivor of the Parkland, Florida, school shooting, in a CNN interview, Feb. 15.
6. “(I am) not smart, but genius … and a very stable genius at that!” — President Donald Trump, in a tweet, Jan. 6.
7. “You don’t have to agree with Trump but the mob can’t make me not love him. We are both dragon energy. He is my brother. I love everyone.” — Kanye West, in a tweet, April 25.
8. “Our country is led by those who will lie about anything, backed by those who will believe anything, based on information from media sources that will say anything.” — James Comey, in a tweet, May 23.
9. “I have just signed your death warrant.” — Judge Rosemarie Aquilina, addressing former USA Gymnastics doctor Larry Nassar upon sentencing him to up to 175 years in prison for sexual assault, Jan. 24.
10. “If you see anybody from that Cabinet in a restaurant, in a department store, at a gasoline station, you get out and you create a crowd! And you push back on them. And you tell them they’re not welcome anymore, anywhere.” — Rep. Maxine Waters, in remarks at a rally in Los Angeles, June 23.