Ex-USA Gymnastics boss Steve Penny approached FBI agent about Olympic security job

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INDIANAPOLIS — As the FBI investigation into Larry Nassar languished in 2015, the head of USA Gymnastics told the agent in charge of the FBI's Indianapolis field office about a top security job in Olympic sports, The Indianapolis Star has learned.

Then-USA Gymnastics President and CEO Steve Penny told Special Agent in Charge W. "Jay" Abbott that the head of security for the U.S. Olympic Committee would be retiring and suggested Abbott might be interested in the position, Penny’s lawyer confirmed.

The FBI’s investigation into Nassar lasted more than a year, and now the FBI's handling of the allegations is being investigated by multiple state and federal entities.

Attorney Edith Matthai confirmed the conversation took place, but told The Star "any suggestion that Steve had the conversation with Abbott in order to impact the FBI investigation is false and defamatory."

She said Penny expected the FBI to properly investigate Nassar.

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"At the time Mr. Penny believed the matter was being or had been transferred from Indianapolis to Detroit," Matthai said in an email to The Star. "There was no promise of a job nor did Mr. Penny have the ability to hire Mr. Abbott for that position. There was no conflict of interest."

Walker County Criminal District Attorney David Weeks, whose office is prosecuting Penny on an unrelated felony tampering with evidence charge, said Thursday night he found the situation "troubling." Weeks said it "doesn't pass the smell test."

"At the very least it's bad optics," he told The Star. "I'd be concerned about it, and I'd want to know more."

Matthai told The Star that other people also suggested Abbott apply for the USOC job, which did not become available until 2017. She said she did not know whether Abbott ever applied for the position.

Abbott retired from the FBI in January. He did not respond to a message left with the FBI Thursday.

Mark Jones, a spokesman for the U.S. Olympic Committee, said he did not know if Abbott was considered for the position.

Jones said he was unaware of the discussion between Penny and Abbott. He said he did not know if anyone else at the USOC was aware of the discussions.

Nicole Deal, USOC’s current chief security officer, was hired in July 2017 to replace Larry Buendorf, who stayed on until this spring to ensure a smooth transition, Jones said.

Jones said he did not know if or when the position was advertised, nor did he know when Buendorf’s retirement was announced or how long it had been anticipated.

Asked if the leader of a sports governing body such as Penny would have influence over the hiring of USOC’s chief security officer, Jones said, "No."

USA Gymnastics and its troubled culture An IndyStar investigation revealed incomplete reporting by executives of USA Gymnastics of sexual-abuse allegations from its athletes. However, a troubled culture still surrounds the Indianapolis-based organization.

Multiple individuals and entities — such as federal lawmakers, the FBI and the law firm Ropes & Gray — are investigating what went wrong in the Nassar investigation.

The U.S. Department of Justice is investigating how the Indianapolis office of the FBI handled sexual abuse allegations against Nassar — in particular Penny's communications with Abbott, the Wall Street Journal reported last month.

John Lavinsky, a spokesperson for the Office of Inspector General at the Department of Justice, declined to comment Thursday for this article. "Our practice is not to confirm or deny the existence of an investigation," he said.

Nassar was arrested after a 2016 IndyStar investigation exposed widespread sexual abuse problems at USA Gymnastics. He was sentenced in January to 40 to 175 years in prison on seven counts of first-degree criminal sexual conduct.

Nearly 500 girls and women have come forward claiming they were abused by Nassar over more than two decades.

In a separate case, Nassar was sentenced to 60 years in prison on child pornography charges.

In Texas, Penny is accused of ordering the removal of documents from the Karolyi Ranch "for the purpose of impairing the ongoing investigation by destroying or hiding the documents," according to a release.

Matthai, Penny's attorney, said: "Mr. Penny is confident that when all the facts are known it will be shown that he did nothing criminal."

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