Federal prosecutors in New York are investigating USA Swimming, including allegations that the organization stifled athlete sexual-abuse claims, concealed its assets and improperly reaped hundreds of thousands of dollars in rebates from its in-house insurance company, people familiar with the matter said.
Over the past year, a federal grand jury in Manhattan has heard evidence in the investigation, which is being led by the Manhattan U.S. Attorney’s Office and the Federal Bureau of Investigation.
Agents and prosecutors are particularly interested in what some people described as “the money trail” between USA Swimming—which oversees amateur swimming across the country, from thousands of youth pool clubs to the selection of the U.S. Olympic team—and the organization’s insurance company and its affiliated foundation.
A spokeswoman for USA Swimming said the organization “supports any government investigation that goes toward protecting athletes.” She added that the organization was confident in the integrity of its finances and tax filings, including for the foundation and the insurance company, which is now defunct.
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