ARIZONA NEWS

Figure in 1990s ASU point-shaving scandal repays $3.6M in restitution for 2013 fraud case

Jun 7, 2024, 2:00 PM

Stock image of scales and a gavel, representing justice. Joseph N. Gagliano, a figure in Arizona St...

Joseph N. Gagliano, a figure in Arizona State University's 1990s point-shaving scandal, has repaid $3.6 million in an unrelated 2013 fraud case, authorities announced June 6, 2024. (Pexels Photo)

(Pexels Photo)

PHOENIX – A figure in Arizona State University’s infamous 1990s point-shaving scandal has repaid more than $3.6 million in an unrelated bank fraud case from 11 years ago, federal authorities announced Thursday.

Joseph N. Gagliano was sentenced to 30 months in prison and ordered to pay the restitution in October 2013 after he was convicted on one count of conspiracy to commit bank fraud, according to the U.S. Attorney’s Office for the District of Arizona.

Gagliano agreed to a repayment plan at the time, and the victims have now received full compensation.

Gagliano played role in ASU point-shaving scandal

If his name sounds familiar, Gagliano was sentenced to 15 months in prison for his role in the 1993-94 point-shaving scandal involving ASU basketball players Stevin “Hedake” Smith and Isaac Burton Jr.

Benny Silman, an ASU student at the time, was sentenced to 46 months in prison for masterminding the scheme.

In the 2013 bank fraud case, Gagliano submitted documents with false information to obtain Small Business Administration (SBA)-backed loans and loan modifications, according to prosecutors.

The lenders and taxpayer-funded SBA incurred substantial losses when Gagliano, a Valley car wash owner at the time, defaulted on the loans.

The U.S. Attorney’s Office Financial Litigation Program successfully collected the debt.

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Figure in 1990s ASU point-shaving scandal repays $3.6M in restitution for 2013 fraud case