Sunday, January 18, 2004
Copyright © Las Vegas Review-Journal

BROAD-RANGING INVESTIGATION: FBI probe puts boxing on edge

Indictments expected in aftermath of Top Rank raid, undercover findings

By KEVIN IOLE
REVIEW-JOURNAL

Top Rank Inc. president Bob Arum, shown testifying before the Nevada Athletic Commission in 2000, has declined comment since the FBI's Organized Crime squad raided the company Jan. 6. Photo by Clint Karlsen.

Bobby Goodman, director of boxing operations for Don King Productions, is no fan of rival promoter Bob Arum, president of Top Rank Inc. They have dueled over fights and fighters for more than three decades.

So when news broke that Arum's office had been raided Jan. 6 by agents from the Organized Crime squad of the FBI, Goodman couldn't resist.

"It couldn't have happened to a nicer guy," he said.

Goodman's boss knows too well about FBI raids. When it raided King's offices in 1999 during the IBF bribery investigation, the FBI brought along 70 agents, and nearly as many television cameras showed up, too.

No charges were filed against King as a result of the raid, but in a bitterly ironic twist, Arum admitted having paid a bribe and eventually was forced to pay a $125,000 fine by the Nevada Athletic Commission.

Now, with Arum seemingly down for the count, King's silence has been conspicuous.

"I'm not going to kick a man when he's down," King said. "Besides, I'm sure there are a lot of them kicking at Bob now."

The FBI and the New York City police are conducting a joint investigation into alleged fight fixing, drug trafficking and organized crime unrelated to boxing.

Agents seized 10 computers, videotapes, boxer contracts and medical and financial documents in the raid of Top Rank's offices. The search warrant was sealed and broadly worded, leaving Top Rank and its lawyer, Richard Wright, at a loss to know what the agents were seeking.

"I thought it may have been some kind of tax thing at first," Wright said, though he has backed away from that assessment as information trickles out.

Wright has instructed Top Rank employees to not comment on the case.

"This is a very serious matter and (Arum) understands that," said Sig Rogich, head of Rogich Communications, retained as Top Rank's spokesman since the raid.

Sources familiar with the investigation say indictments are forthcoming against an array of promoters, boxers and managers. Among the allegations will be fight fixing, immigration violations, forged medical records and drug trafficking.

At least one focus of the probe appears to be journeyman boxer Verdell Smith, who has been suspected of taking a dive in a fight against Top Rank boxer Jorge Paez in Mexico on Sept. 7, 2001. Smith has a career record of 44-84-4.

ESPN2 boxing analyst Teddy Atlas first mentioned Smith's alleged role Jan. 9 on the network's "Friday Night Fights" telecast, saying there were suspicions Smith had accepted money in exchange for losing to Paez.

Though Paez doesn't appear on major Top Rank cards, he is a popular staple on its Friday night broadcasts on the Spanish language network Telefutura, often drawing record ratings.

Smith was previously managed by Sean Gibbons, who was fired as a Top Rank matchmaker Monday, further indication that Smith is embroiled in the probe.

But attorney Mike Marley, who represents Smith, said he is convinced Smith did not throw the fight against Paez, and that he offered in a conversation with FBI Special Agent Henry Schlumpf, who is heading the probe, to have the fighter sit for an interview with the FBI.

"When you read what's been written, you'd think (Smith) was the next Al Capone, but he hasn't been charged with jaywalking, let alone convicted," Marley said. "As I told the agent, he won't be convicted of anything because he has never taken a dive.

"Verdell has never given less than his best in the ring. He's always put forth his best effort."

Though Smith has fought many big names and former world champions, including Hector Camacho Sr., Jose Luis Castillo, Leonard Dorin, Cesar Bazan, Jesse James Leija and Angel Manfredy, he is a bit player in boxing. Marley said Smith is only a part-time professional who has usually held jobs outside the sport.

"I don't think the FBI sent all these agents up to see Bob (Arum) just to find out what was going on in Verdell's career," Marley said. "There's more to it, believe me."

A man who might be able to shed light on the investigators' intentions is boxer Joey Torres, a convicted murderer who is in Men's Central Jail in Los Angeles, awaiting transfer to state prison.

Torres temporarily gained freedom Jan. 6, 2002, when a judge vacated his sentence and released him. The state of California appealed and won, reinstating the murder conviction. But Torres failed to surrender as promised, and was on the run until being captured and returned to prison Dec. 9 last year.

Torres ingratiated himself with many in the Las Vegas boxing scene with his story of his wrongful conviction, but Los Angeles County deputy district attorney Pamela Frohreich says much of Torres' story is untrue.

"Joey Torres is one of the greatest liars who ever walked the face of this Earth," Frohreich said. "He's an Academy Award liar. He's very, very good. You shouldn't believe him if he tells you the sky is blue. Check everything he says."

Investigators suspect that Torres' only pro fight may have been rigged. He knocked out Perry Williams in the second round on a Top Rank-promoted card in Anaheim, Calif., on April 27, 2002. A California Athletic Commission investigation found no evidence of a fix, but authorities are looking again.

Torres -- also known as Jose Torrey, and who gave his name as Kim Joseph Torreys when booked into the L.A. County Jail on Dec. 9 -- introduced many boxing associates to a man he identified as his cousin, "Big Frankie." The man handed out business cards identifying himself as Frank Manzione, operator of YGJ Co., at 327 Meade Ave.

Manzione, though, was no local businessman. He was an undercover investigator working for the New York City police.

"He's a very gutsy guy," New York Police commissioner Raymond Kelly told the New York Daily News. "He's terrific. He did an excellent job."

While Manzione apparently also was investigating criminal activity outside of boxing, sources said, many in boxing are on edge about what he might be able to reveal about the sport.

Marley, who once worked as King's publicist, said he has seen it all before.

"Boxing will survive, because it always does," he said. "But whatever comes of this, it's not good. This type of publicity never makes it easier to sell a ticket to a show."