Headlines

  • Astros To Sign Jake Odorizzi
  • Brewers To Sign Jackie Bradley Jr.
  • Surgery Recommended For Framber Valdez
  • No Planned Future Discussion On Expanded Playoffs, Universal DH In 2021
  • Out Of Options 2021
  • Royals, Hunter Dozier Agree To Four-Year Extension
  • Previous
  • Next
Register
Login
  • Hoops Rumors
  • Pro Football Rumors
  • Pro Hockey Rumors

MLB Trade Rumors

  • Home
  • Teams
    • AL East
      • Baltimore Orioles
      • Boston Red Sox
      • New York Yankees
      • Tampa Bay Rays
      • Toronto Blue Jays
    • AL Central
      • Chicago White Sox
      • Cleveland Indians
      • Detroit Tigers
      • Kansas City Royals
      • Minnesota Twins
    • AL West
      • Houston Astros
      • Los Angeles Angels
      • Oakland Athletics
      • Seattle Mariners
      • Texas Rangers
    • NL East
      • Atlanta Braves
      • Miami Marlins
      • New York Mets
      • Philadelphia Phillies
      • Washington Nationals
    • NL Central
      • Chicago Cubs
      • Cincinnati Reds
      • Milwaukee Brewers
      • Pittsburgh Pirates
      • St. Louis Cardinals
    • NL West
      • Arizona Diamondbacks
      • Colorado Rockies
      • Los Angeles Dodgers
      • San Diego Padres
      • San Francisco Giants
  • About
    • MLB Trade Rumors
    • Tim Dierkes
    • Writing team
    • Advertise
    • Archives
  • Contact
  • Tools
    • 2020-21 Top 50 MLB Free Agents With Predictions
    • 2020-21 MLB Free Agent Tracker
    • 2020-21 MLB Free Agent List
    • 2021-22 MLB Free Agent List
    • Projected Arbitration Salaries For 2021
    • 2021 MLB Arbitration Tracker
    • Transaction Tracker
    • Extension Tracker
    • Agency Database
    • Last 100 Comments
  • NBA/NFL/NHL
    • Hoops Rumors
    • Pro Football Rumors
    • Pro Hockey Rumors
  • App
  • Chats
Go To Pro Hockey Rumors
Go To Hoops Rumors

Nats Insurance Lawsuit Details Kickback Scheme

By Aaron Steen | August 13, 2013 at 5:41pm CDT

The Nationals have filed a lawsuit against the Westchester Fire Insurance Co. in a bid to recoup the bonus that Dominican prospect Esmailyn Gonzalez – now known as Carlos David Alvarez Lugo - received for signing with the club, a detailed article by Baseball America's Ben Badler reports. According to Badler, the lawsuit describes a scheme in which Alvarez allegedly kicked back $300K of his $1.4MM bonus to Jose Rijo, who ran the club's Latin American scouting operation at the time. Rijo, a special assistant to former GM Jim Bowden, was fired in February 2009, and Bowden resigned three days later.

Alvarez claimed to be 16 at the time of signing, but as Sports Illustrated reported in 2009, he's actually four years older than that and was using a fake name. According to the lawsuit, the player “executed an affadavit detailing his fraud," including information on the kickback arrangement, leading the Nationals to file an insurance claim to reclaim their loss. However, two years after the filing of the claim, Westchester denied it.

In the suit, the Nationals argue their contract with Westchester covered $1MM of commercial crime insurance coverage and that the signing resulted from fraud by their employees. The club notes that Chartis, its excess loss insurer, has paid the club "substantially all of the Nationals’ loss in excess of Westchester’s liability limit for this policy." The suit adds that the Yankees and Rangers were also interested in Alvarez, apparently to suggest that competition justified the $1.4MM bonus. Westchester has yet to file a response to the complaint.

As Badler notes, Rijo was charged with money laundering in the Dominican Republic in 2012 in connection with the activities of suspected drug trafficker Matias Avelino Castro, who's now a fugitive. Alvarez, 27, has a .291/.412/.409 line in 1,207 minor league plate appearances, and has appeared in just two games for a Nats' rookie affiliate this year.

Share 0 Retweet 6 Send via email0

Washington Nationals

Indians Sign David Cooper
Main
Marlins Notes: Abreu, Reynolds, Eovaldi, Alvarez
0 comments

Leave a Reply Cancel reply

Please login to leave a reply.
Log in Register

ad: 300x250_1_MLB

    Top Stories

    Astros To Sign Jake Odorizzi

    Brewers To Sign Jackie Bradley Jr.

    Surgery Recommended For Framber Valdez

    No Planned Future Discussion On Expanded Playoffs, Universal DH In 2021

    Out Of Options 2021

    Royals, Hunter Dozier Agree To Four-Year Extension

    Giants, Scott Kazmir Agree To Minor League Deal

    Kelvin Herrera Announces Retirement

    Braves Extend Brian Snitker

    Yankees Sign Justin Wilson

    Recent

    Nationals Release Jeremy Jeffress

    AL Notes: White Sox, Angels, Ward, Tigers, Greiner

    NL Injury Notes: Soroka, Mikolas, Kelly, Martinez

    Top Remaining MLB Free Agents

    Pirates Acquire Duane Underwood, Designate Carson Fulmer

    AL West Notes: Seager, Bregman, Lowrie, Murphy

    COVID Notes: 3/7/21

    Offseason In Review: Pittsburgh Pirates

    Astros’ Forrest Whitley Suffering From Right UCL Sprain

    Quick Hits: Cishek, Souza, Herrera

    Latest Rumors & News

    Latest Rumors & News

    • Kris Bryant Rumors
    • Jackie Bradley Jr. Rumors
    • Jake Odorizzi Rumors
    Trade Rumors App for iOS and Android

    MLBTR Features

    MLBTR Features

    • Go Ad-Free
    • How To Set Up Notifications For Breaking News
    • 2020-21 Top 50 MLB Free Agents With Predictions
    • 2020-21 MLB Free Agent Tracker
    • 2020-21 MLB Free Agent List
    • 2021-22 MLB Free Agent List
    • Projected Arbitration Salaries For 2021
    • 2021 MLB Arbitration Tracker
    • Transaction Tracker
    • Extension Tracker
    • Agency Database
    • MLBTR On Twitter
    • MLBTR On Facebook
    • Team Facebook Pages
    • Hoops Rumors
    • Pro Football Rumors
    • Pro Hockey Rumors

    Rumors By Team

    • Angels Rumors
    • Astros Rumors
    • Athletics Rumors
    • Blue Jays Rumors
    • Braves Rumors
    • Brewers Rumors
    • Cardinals Rumors
    • Cubs Rumors
    • Diamondbacks Rumors
    • Dodgers Rumors
    • Giants Rumors
    • Indians Rumors
    • Mariners Rumors
    • Marlins Rumors
    • Mets Rumors
    • Nationals Rumors
    • Orioles Rumors
    • Padres Rumors
    • Phillies Rumors
    • Pirates Rumors
    • Rangers Rumors
    • Rays Rumors
    • Red Sox Rumors
    • Reds Rumors
    • Rockies Rumors
    • Royals Rumors
    • Tigers Rumors
    • Twins Rumors
    • White Sox Rumors
    • Yankees Rumors

    ad: 160x600_MLB

    Navigation

    • Sitemap
    • Archives
    • Feeds by Team

    MLBTR INFO

    • Advertise
    • About
    • Commenting Policy
    • Privacy Policy

    Connect

    • Contact Us
    • Twitter
    • Facebook
    • RSS Feed

    MLB Trade Rumors is not affiliated with Major League Baseball, MLB or MLB.com

    hide arrowsFOX Sports Engage Network scroll to top
    Close

    Desktop Version | Switch To Mobile Version