The NBA brought the hammer down on the LA Clippers and owner Steve Ballmer for circumventing the salary cap to funnel more money to Kawhi Leonard — and now federal prosecutors are looking into the matter.
The Justice Department has opened a criminal investigation into the Clippers' efforts to secure "no-show" endorsement deals for Kawhi Leonard, the New York Times reports. This investigation is being run out of the U.S. Attorney's Office in Brooklyn, the office that has traditionally looked into issues with professional sports leagues.
The investigation is in its earliest stages, and it's unclear what, if any, federal charges could come out of it, according to the report.
The Justice Department investigation comes in addition to the Securities and Exchange Commission looking into Daktronics' role in the scandal, as it had an endorsement deal with Leonard despite never having had a celebrity endorser before and there being no evidence Leonard did anything for the company. Daktronics is publicly traded, and the SEC is tasked with protecting shareholders.
The NBA oversaw a year-long investigation of its own into the Clippers working to circumvent the salary cap with Leonard and last month came down with the harshest penalties ever imposed on a team:

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