New York attorney general Andrew Cuomo, following in the footsteps of Elliot Spitzer, has subpoenaed the athletics departments of Georgia State and Georgia Tech. Cuomo wants to find out if they recevied kickbacks from a company called University Financial Services. UFS provides student loans.
Authorities said they do not know how the athletics departments promoted the company in question, University Financial Services of Clearwater, Fla.
“We believe there is an arrangement between these schools and UFS,” Lee Park, a spokesman for the New York attorney general’s office, said Wednesday. “We are seeking information to determine what those arrangements are.”
Georgia Tech’s relationship with UFS is indirect, Tech associate athletics director Wayne Hogan said. UFS bought advertising through ISP Sports of Winston-Salem, N.C., which has a marketing contract with Tech’s athletics department. ISP’s Web site shows it also works with Georgia State and many of the other athletics departments under subpoena.
“I don’t know the details [of the UFS contract]. It’s not an account I worked,” said Owen Shull, ISP’s vice president and general manager for Georgia Tech.
Universities and their athletics departments cannot endorse a student-loan provider based “purely on payments from the lender,” the New York attorney general’s office said in a statement. Doing so, it said, would violate New York and federal consumer-protection laws.
Let’s see here: The NY AG doesn’t know what relationship existed, Tech had no direct relationship, Georgia State probably didn’t either, yet the subpoenas are flying. I’m glad to know things are under control in New York so Cuomo can persue such crimes against humanity.