The arrangement may, however, have violated NCAA rules, which prohibits student athletes from receiving special gifts or treatment. Gallon announced in April that he was leaving Oklahoma University and entering the National Basketball Association draft after one season.
The NCAA can't regulate Hausinger, but the controversy led to his voluntary resignation from the brokerage in March, his lawyer said, and resulted in damaging comments on his BrokerCheck report, a free service run by Finra which allows investors to check the backgrounds of advisors. Merrill Lynch described an "internal review concerning potential violations of firm policies regarding communications with clients and the public, employee conduct, and impermissible payments."
Hausinger, who is now an advisor for Raymond James Financial Inc. (RJF), disputed that summation in a comment on the same report. He alleged in the response that another Merrill Lynch employee gave his personal financial information to the media.
Hausinger declined to comment for this article, referring the request to his lawyer.
Hausinger was known to network with sports figures. Badway said he was introduced to the market through a program sponsored by Merrill Lynch.
A Merrill Lynch spokesman declined to comment.
An NCAA spokesman declined to comment on whether it is investigating the wire transfer, but said the organization is "working cooperatively" with the University of Oklahoma. An OU assistant basketball coach, Oronde Taliaferro, exchanged numerous phone calls and text messages with Hausinger over a 10-month period, as reported by the Daily Oklahoman and Tulsa World in May. Taliaferro resigned in April.
advisors, who must register with the state college athletic associations of the student athletes with whom they are speaking, may also find themselves at the center of controversy for providing free advice. Student athletes are in violation of NCAA rules if they don't pay the advisors' going rate, according to an NCAA spokesman. Promises to pay for services after a contract is signed is also a no-no.
"The competition for these young stars is ridiculous," said Jones. "You have to stay ethically sound and keep your rulebook with you at all times."
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