University of Oklahoma football coach Bob Stoops confirmed Monday he invested in an online digital music business that federal regulators now allege is an illegal pyramid scheme.
"Even though this investment was less than $500, like all others I make, it was reviewed by a trusted and experienced group of legal and financial advisers,” Stoops said Monday in a statement released by OU. "I have been and remain comfortable with the direction they have provided for many years.”
Kenny Mossman, OU associate athletics director, said Stoops did not say how much money he made off the investment or whether he recruited other coaches or players to participate.
The Federal Trade Commission filed a complaint June 6 alleging that BurnLounge Inc. is operated as an illegal pyramid scheme.
FTC attorneys said BurnLounge touted the participation of major music and sports celebrities such as singer Justin Timberlake and professional basketball star Shaquille O'Neal as validation of its offerings.
Stoops is not named as a defendant in the FTC lawsuit against BurnLounge, but his name surfaced Sunday when a Columbia, S.C., newspaper quoted former OU receivers coach Steve Spurrier Jr. as saying he invested in BurnLounge a year ago after Stoops introduced him to the concept.
"When Bob Stoops got me, he said, ‘I've spoken to a lawyer about this. I've spoken to my agent. I've spoken to some people to find out if this is a legitimate thing.