LOS ANGELES -- A federal grand jury is investigating possible criminal financial misconduct during the Dodgers ownership of Frank and Jamie McCourt, according to reports in the Los Angeles Daily Journal and Los Angeles Times.
During the recently concluded bankruptcy proceedings of the club, Major League Baseball asserted that McCourt had "looted" $189 million from the club for personal use. Also revealed was a complicated corporate structure for the club involving several companies, one that received $14 million in annual parking lot rent from the team, with $5 million going to Frank McCourt.
Revelations during the McCourts' divorce detailed that the couple paid no federal income taxes from
2004-09, and that two of their sons were paid a combined $600,000 in annual salary by the team while one worked for Goldman Sachs and the other attended Stanford University.
In a letter to Frank McCourt last year, MLB Commissioner Bud Selig said the Internal Revenue Service was investigating the McCourts' tax returns during their ownership of the team. Also, the California attorney general ordered the club to repay $361,432 to a Dodgers charity that was improperly spent as a bonus to team executive Howard Sunkin and for a consulting contract.
Ken Gurnick is a reporter for MLB.com. This story was not subject to the approval of Major League Baseball or its clubs.