
The Los Angeles Clippers controversial dealings with Kawhi Leonard have taken another major turn, with the U.S. Department of Justice reportedly opening a criminal investigation into the franchise.According to The New York Times, the U.S. Attorneys Office for the Eastern District of New York is conducting the investigation, which remains in its early stages. Prosecutors have reportedly issued at least one subpoena, with a grand jury potentially becoming involved.It is not yet known whether the investigation will result in criminal charges.The development comes just days after the NBA handed the Clippers one of the most severe punishments in league history following a yearlong investigation into alleged salary-cap circumvention.The league fined the franchise $30 million, stripped it of five first-round picks from 2029 through 2033 and suspended owner Steve Ballmer for one year.The NBA concluded that the Clippers helped facilitate off-court income opportunities for Leonard through sponsorship and endorsement arrangements with companies that did business with the team.One of the deals at the center of the investigation involved now-bankrupt financial technology company Aspiration. Leonard reportedly received a $28 million endorsement deal with the company, while Aspiration had separately agreed to a $300 million sponsorship deal with the Clippers.NBA investigators also found that the franchise directed a kickback from a scoreboard contract toward Leonard through an endorsement agreement.Leonard was fined $700,000, while his uncle and former business manager, Dennis Robertson, was banned from the NBA for five years.Despite the NBAs findings, Leonard has maintained that he was unaware of any effort to circumvent the salary cap.I had no knowledge of any intent on anyones part to circumvent the salary cap, Leonard said in a statement.Integrity and respect for this game are fundamental to who I am. I accept full responsibility for lapses in judgment by people within my inner circle and regret the distraction this situation has caused the fans and my family.The Clippers and Ballmer have also denied wrongdoing and are reportedly considering legal action against the NBA.Now, with federal prosecutors examining the situation, the controversy surrounding Leonard and the Clippers has moved well beyond an NBA disciplinary matter.READ MORE: Kawhi Leonard Trade Hits Mysterious Delay as Clippers Hold Up Deal