Duke players wrongly accused of rape may have received $20MILLION each in secret settlement?

Mike Gallagher

Feb 26, 2011 - 05:12

Feb 26, 2011 - 05:28

0 2.6k

Duke players wrongly accused of rape may have received $20MILLION each in secret settlement?

Exonerated: Reade Seligmann may have received as much as $20million from Duke University in a settlement over their handling of the 2006 rape scandal

The settlement won by three Duke lacrosse players falsely accused of rape five years ago remained one of the most enduring mysteries of a scandal which tore the university apart.

But now the puzzle appears to have been solved by a tax bill, which reveals the figure may have been as high as $20million - each.

According to reports, Reade Seligmann, one of the three men exonerated, owes $6.5million in unpaid tax from 2007 - the year of the settlement from the university in Durham, North Carolina.

The figure means he received an income of $20million that year, a tax lawyer told the Detroit News, which has led to speculation three players could have received as much as $60million between them.

Mr Seligmann, now 24, was one of three Duke lacrosse players accused of raping a black stripper, Crystal Magnum, at a party thrown by the team, the Duke Blue Devils, in March 2006.

The case caused a media storm over allegations of racism. It was alleged the players had asked only for white or Hispanic strippers, but became angry when two black dancers tued up.

Prosecutor Mike Nifong indicted the three on charges of rape, sexual assault and kidnapping.

Scandal: Duke lacrosse players Dave Evans, left, Collin Finnerty and Reade Seligman received an undisclosed settlement after being falsely accused of rape

The university suspended the players, sacked the team's coach and eventually cancelled the entire lacrosse season.

But the case fell apart because of a lack of evidence and Nifong was forced to resign after scathing criticism over his handling of it.

He was convicted for contempt amid accusations he withheld DNA evidence and made false inflammatory statements about the players to the media.

State prosecutors who took over the case cleared all three of the charges, saying there had been a 'rush to accuse' by Nifong. Afterwards, the three sued the university over their handling of the scandal, and received an undisclosed settlement.

Accuser: Crystal Magnum, an exotic dancer, alleged the three lacrosse players raped her at a team party in 2006. The case was later thrown out

At the time Duke University said it settled to 'eliminate the possibility of future litigation', and said it deeply regretted what the students had gone through.

Disgraced: Mike Nifong was debarred and forced to resign over his handling of the lacrosse rape scandal.

The Detroit News reports that a tax lien filed on February 17 showed Mr Seligmann owed $6,492,377 in income tax from 2007.

Based on current tax rates, tax lawyer Jeffrey Freeman told the newspaper that meant Mr Seligmann would have eaed $20million that year.

However his lawyer, Richard Emery, said the tax bill was inaccurate.

He told the newspaper: 'We are trying to get to the bottom of this mistake. We are retaining tax counsel to figure this out. The lien will be withdrawn shortly. It is in error.

'This is quite obviously a mistake. We will get it corrected. The whole thing is very weird and makes no sense.'

After the case was settled, Mr Seligmann transferred to Brown University, where he played for the lacrosse team. He is now enrolled at Emory University's law school, the Detroit News reports.