Iowa investigators in student sports betting probe defend investigation tactics

William Morris, Des Moines Register
Updated ·5 min read
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Iowa's Department of Public Safety says it believes its investigation into gambling at Iowa State University and University of Iowa was constitutional, amid allegations from defense attorneys the state failed to obtain warrants before searching for on-campus use of cell phone betting apps.

More than 20 current and former Iowa and Iowa State athletes and student managers have been charged with identity theft and other crimes related to allegedly using other people's accounts to make online wagers through apps like FanDuel. Many have pleaded guilty to reduced charges of underage gambling, while others continue to fight their cases. Defendants also have faced NCAA investigations and sanctions.

In recent weeks, attorneys for the remaining defendants have accused investigators of wrongdoing. In particular, defense attorney Van Plumb alleged in court filings that the lead case agent, Brian Sanger, who used software to search for any uses of gambling apps within University of Iowa dorms and athletic facilities, failed to obtain a warrant and acted without any tips or complaints of criminal activity.

Officials defend sports gambling investigation in rare statement

In a statement Wednesday, the DPS responded to those claims, saying that investigators "conferred with legal counsel to ensure lawful access to and use of the technology" and that "we believe the evidence was obtained in a constitutionally permissible manner."

Federal law prohibits sports betting across state lines, and under Iowa law, sportsbooks are required to implement "location detection procedures" to prevent gamblers from placing wagers outside their registered states. The companies also are required to take "reasonable steps" to prevent athletes, coaches and others involved in sporting events from gambling on them.

Such rules have led many sportsbooks to employ services such as GeoComply, which uses phone location data to detect and report where a wager is placed from. Attorneys for the Iowa athletes accuse Sanger of using similar software to identify all wagers made from university buildings, resulting in lists of what they say were "hundreds" of accounts for which investigators then subpoenaed records.

The department says the software in question was made available to its Division of Criminal Investigation "to help identify anomalies suggesting suspicious or criminal activity" but does not say whether the department was aware of any such anomalies prior to conducting the searches.

The statement also comes after repeated requests from the Register for comment on the defendants' recent court filings. It acknowledges that DPS "traditionally does not comment on active investigations or litigation" but says the department wants "to reassure Iowans that the Department always strives to scrupulously uphold the laws and constitutions of the United States and the State of Iowa."

Attorney for players says DPS misinterpreting Iowa code in claim it justifies investigation

Plumb, the defense attorney, in a response to the DPS statement, took issue with a section where it asserted that the investigation was warranted under a section of Iowa code that "requires sports wagering licensees to 'employ reasonable steps to prohibit coaches, athletic trainers, officials, players, or other individuals who participate in an authorized sporting event that is the subject of sports wagering, from sports wagering.'” He countered that lawyers for the players believe the section "only applies to licensees, or casinos and their employees, not private citizens."

He also reiterated his contention that Sanger, the DCI agent who initiated the investigation, "admitted to not having reasonable cause to initiate the investigation or to request the first round of subpoenas wherein the information of hundreds of people was accessed resulting in approximately 20 indictments of student athletes."

Statement silent on allegation DCI officials lied to their own agents about probe

The statement did not address the most explosive allegation to arise in the case: that DCI officials lied to their own agents to push forward the controversial investigation.

Defense attorney Christopher Sandy on Jan. 23 filed a motion seeking records of possible misconduct by investigators. It cited a Jan. 19 deposition in which DCI Special Agent Mark Ludwick testified that he and other agents were dispatched May 2, 2023, to interview a number of Iowa State students. Ludwick said Special Agent in Charge Troy Nelson briefed them that the investigation was "purely administrative" and the targets were online gambling operators like FanDuel and DraftKings.

Ludwick was assigned to interview Iowa State football player Isaiah Lee, now a client of Sandy's charged with tampering with records, and testified he assured Lee he was not a target of the investigation and didn't face any consequences, leading Lee to tell him about his online gambling. Afterward, Ludwick said, Nelson "congratulated" him "for obtaining a confession."

"Contrary to representations made to him and other Special Agents that morning, Special Agent Ludwick realized the purpose of the investigation was criminal in nature, with the sole targets being male Division I student athletes at the University of Iowa and Iowa State University," Sandy wrote. "Special Agent Ludwick advised his superiors that he would no longer participate in the investigation, and requested reassignment."

The full transcript of Ludwick's testimony has yet to be made public.

Iowa Attorney General Brenna Bird has said she wasn't concerned about the DCI investigation, and referred questions about its conduct to the Department of Public Safety. The DPS has not responded to requests for comment.

Additional sports gambling charges disclosed

Also Wednesday, the DCI released a list of all defendants who have been charged in the investigation, totaling 16 current or former ISU students and eight from University of Iowa. A number of the ISU cases, brought in 2023 by the Story County Attorney's Office, had not previously been reported, including:

  • Drew Woodley, wrestling.

  • Osun Osunniyi, basketball.

  • Howard Brown, football.

  • Nathan Schon, wrestling.

  • Jeremiah 'Trey' Mathis, football.

  • Tyler Claiborne, football.

  • Edwardo Lemos, football.

Also charged in Story County is Jacob English. The Register was unable to confirm English's college affiliation.

Of these cases, all but one have been resolved, with the defendants receiving citations for underage gambling. Ossuniyi, who is now playing in Belgium, failed to make a scheduled initial appearance in September, resulting in a warrant being issued for his arrest.

Brown has since transferred to Boise State, while Woodley, Schon, Claiborne and Lemos remain listed on ISU rosters but do not appear to have competed in 2023.

William Morris covers courts for the Des Moines Register. He can be contacted at wrmorris2@registermedia.com or 715-573-8166.

This article originally appeared on Des Moines Register: Iowa investigators defend tactics in college athletics gambling probe