The University of Houston says an internal review has found no compliance issues related to a financial planner and university athletics booster alleged to have bilked college basketball coaches out of hundreds of thousands of dollars, Houston-area media outlets reported.
In a statement, Houston athletic director Mack Rhoades said an internal review conducted by the school determined that there were no NCAA compliance issues in relation to David Salinas and his Houston Select AAU program. The university also said it has not been contacted by the NCAA.
Salinas, who was found dead of a self-inflicted gunshot wound on Sunday at his home in Friendswood, Texas, was on the board of directors of a nonprofit foundation that raises funds for Houston's athletic programs. He donated a total of $202,069 to Houston athletics between 2000 and 2010, the school said, according to the Houston Chronicle. He also gave to Rice's athletics program.
Salinas, 60, was the apparent target of an investigation by the U.S. Securities and Exchange Commission into whether he orchestrated a multi-million dollar fraud scheme and swindled investors.
A high-ranking source with knowledge of the NCAA's response to the situation reiterated Wednesday that no formal probe had been launched to determine if there was a correlation between the investments and Salinas funnelling players from his AAU team to coaches who invested with him.
At this point, the NCAA doesn't have enough information for a full-scale formal probe that might lead to a notice of allegations, the source said. But the source added that it's normal practice for the body to make calls and follow up leads to see if an investigation is warranted.
"Every day in the NCAA, calls are made pursuing information but that doesn't mean there is an NCAA investigation," the source said.
Former Houston player Moses Malone Jr., the son of the Hall of Fame center, told KRIV-TV in Houston that he was contacted by the NCAA earlier this week.
Malone, who played for Salinas' Houston Select AAU team, said he was asked if Salinas influenced his recruiting in any way. He said he told investigators that he was not steered by Salinas, according to the report.
Meanwhile, coaches who were allegedly bilked out of hundreds of thousands of dollars by Salinas are considering meeting later this week to focus on how to recover their assets, a legal source with knowledge of the effort said.
The National Association of Basketball Coaches' legal team has been contracting affected coaches to consolidate efforts and strategy, although a number of the coaches have already retained their own legal representation, the source said.
"The primary focus of the coaches is to recover their assets," the source said. "This issue right now is recovering the assets. Coaches are collectively trying to see how they can go about that."
The source said Las Vegas and Orlando are being considered as possible locations for a meeting in the next three to four days, as coaches will be in those cities for player evaluations during the July recruiting period. Chicago or Dallas are also being considered as locations, in order to include others who may have lost money in the alleged scheme.
A number of the coaches who were caught up in the scheme told ESPN.com that they felt better about recovering some of the money that they invested in other areas through Salinas.
Salinas had a wide net of clients, from basketball and football coaches to university endowments and churches in the Houston area, according to sources.
Texas Tech coach Billy Gillispie, Baylor's Scott Drew, former Arizona coach Lute Olson, Nebraska coach Doc Sadler, Texas A&M-Corpus Christi coach Willis Wilson, Gonzaga coach Mark Few and Gonzaga assistant and former Utah coach Ray Giacoletti are among coaches who lost money by investing in Salinas' alleged scheme. A number of other men's basketball coaches who have not been publicly identified were also investing with Salinas.
Former Houston coach Tom Penders told ESPN.com that he received a call. But Penders said he couldn't produce any evidence of players being funnelled for money.
Penders, who declined to invest with Salinas, acknowledged that Salinas was part of a group that tried to oust him at Houston prior to his departure a year ago.
"(Salinas' death) is something that none of his friends could have expected," Olson said in a statement Wednesday. "Yes, I've invested with David and he's been a friend for a while, but I did not invest money until after I had retired from coaching."
Arizona had one player -- Juwann McClellan -- who played for Houston Select before attending the university.
Salinas first was introduced to college coaches as possible investors in 1988 when he befriended the Rice coaching staff while his son Chris was playing youth basketball. Then-Rice coach Scott Thompson and assistant Grey Giovanine were the first to invest with him in the late 1980s before introducing him as a trusted friend to other coaches at subsequent Final Fours. Giacoletti also invested through Salinas in the late 1980s.
Andy Katz is a senior college basketball writer for ESPN.com.