‘Serious threat to their well-being’ | Law professors explore ramifications of accusations against commanders


Two local professors discussed the potential fallout and next steps for Washington Commanders owner Dan Snyder in the wake of an FTC investigation.

WASHINGTON — Congress believes the commanders may have committed a crime by taking money belonging to fans and other NFL teams, serious allegations that were exposed in a 20-page letter sent to the Federal Trade Commission on Tuesday.

The Committee on Oversight and Reform says Jason Friedman, a 24-year-old former employee, testified that roughly 2,000 season-ticket holders are owed $5 million in unreturned security deposits. Friedman also reportedly told the Committee that he falsely processed more than $162,000 of Commanders game ticket revenue, claiming the money came from non-NFL games to avoid sharing the revenue with the NFL.

WUSA9 spoke with two local law professors to learn more about the allegations and what’s coming next with a Federal Trade Commission investigation.

“I think what this letter does is backfire, and there are a lot of legal agencies in this area that will be interested in these allegations, and the allegations that come from an insider,” said Georgetown University law professor David Vladec. the said. “This is someone who really knows how the Commanders kept their books, and two separate books at least with regards to some accounting.”

Vladeck added that double counting could take place beyond the civil context with the FTC and could also lead to criminal charges.

“Perhaps the Committee felt that the most important thing was to put money back into the pockets of people who were defrauded, and also to take a closer look at the accounting that the Commanders have done over an extended period of time,” he said. saying. “Double counting and misleading people, those things can be pursued either in a civil context with the Federal Trade Commission or maybe in a criminal context.”

Bill Kovacic, a professor at the George Washington University School of Law, was more inquisitive as to why the Committee chose to go to the FTC first rather than directly to the Justice Department, saying:

“If the underlying allegations of misconduct are genuine and verifiable, then the commanders have a very serious threat to their well-being, as well as to the individuals who participated in the behavior,” he said. “If you think crimes have been committed, then go to an authority that has the ability to impose criminal sanctions.”

The Commanders have not commented on the letter from Congress, but reiterated a statement they made on March 31 in which they categorically deny “any suggestion of financial impropriety of any kind at any time.”

“The most common tool the FTC uses in misrepresentation or fraud cases is usually to say they want a warrant and tell them not to do it again,” Kovacic said. “But how many times have the Commanders and their owner been told not to do it again? How many times have they been exhorted to do things the right way, and how ruthlessly ineffective have those exhortations been?”

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