Pablo Torre outlines real DOJ trouble for Steve Ballmer

The NBA's investigation into the Los Angeles Clippers, Kawhi Leonard, and owner Steve Ballmer may have concluded, but their legal troubles may be far from over. The Clippers were given one of the most severe penalties in sports history after the NBA confirmed their violation of the salary cap through illicit sponsorship payments for Leonard.

Initially, Ballmer was prepared to challenge the penalties, but he eventually accepted them to move forward. However, as Pablo Torre reported on his podcast, there may be significant criminal trouble ahead.

The Department of Justice (DOJ) has opened an inquiry into the scheme that led to the Clippers' penalties. Earlier this year, the founder of Aspiration, an investment company, received a 14-year prison sentence for defrauding investors and lenders. With two separate entities connected to the Clippers probe facing SEC scrutiny, it seems that the situation is escalating.

Torre inquired about the possibility of charges against Ballmer for his involvement in the scandal. Former federal prosecutors suggest that a criminal conspiracy case against Ballmer and the Clippers could be built on securities fraud allegations in relation to the Leonard case.

The potential legal consequences for Ballmer extend beyond the initial penalties imposed by the NBA. If the Clippers were aware that these companies had to conceal the payments in their security filings, they could face conspiracy to defraud investors and violation of laws. Former federal prosecutor Lou Manzo explained that if the Clippers aided lies that benefited someone with money, it would constitute basic wire fraud. To secure a conviction, the DOJ would only need to prove an interstate jurisdiction.

However, the question remains: how aggressively will the DOJ pursue charges against Ballmer? The Trump administration is known for its political stance, and while Ballmer is politically neutral, his wife's recent donations to NPR may have drawn attention. Will the DOJ view Ballmer as a target, or will his billionaire status provide enough protection?

It is also possible that someone else within the Clippers organization or the companies involved will be held accountable for their actions. Regardless of the outcome, the legal and criminal investigation into this scandal appears to be just beginning.