NEW YORK - Major League Baseball has begun an investigation into allegations that Reds principal owner Marge Schott used the names of seven Reds employees to falsify car sales.
A member of baseball's ruling executive council Wednesday termed the allegations ''serious'' and the investigation ''active.''
The Enquirer reported Jan. 4 that General Motors claimed Schott used the name of, among others, John Allen, her hand-picked replacement to run the club while she is on suspension from baseball until after the 1998 season.
''If these allegations are true, they would be considered serious,'' National League President Leonard J. Coleman Jr. said Wednesday. ''Warranted action would follow. But I want to be the last person to prejudge anyone. She hasn't even had the chance to respond to GM's allegations, so let's be fair.''
Schott has until Jan. 21 to respond to the charge she falsified 57 sales in 1995 to make quotas, but GM is expected to drop the complaint it filed with Ohio Dealers Licensing Board on Dec. 4 because Schott is selling the dealership, to Joseph Auto Group.
Coleman reiterated Wednesday that MLB's investigation will go on despite the sale.
Coleman wouldn't say whether using the names of Reds' employees to allegedly commit fraud violated the agreement Schott signed June 12, 1996, when she had to relinquish control of the club. That document was never made public.
Despite the GM complaint, Coleman does not question the integrity of the Reds' books.
''That has never been an issue in terms of audits, and it has never been an issue with the commissioner's office,'' Coleman said. ''We have complete confidence in John Allen's leadership. He's the day-to-day control person and has been the chief financial officer. We have every confidence in the credibility of the Reds' books.''
Also Wednesday, Coleman said he has made it clear to Hamilton County officials that Allen is the team's only point person in stadium negotiations. In fact, sources close to county officials say Coleman sent a letter to county officials as early as October clarifying the point.
''If I'm needed to arbitrate, I will, but we haven't reached that point yet,'' Coleman said.
Previous stories
SCHOTT TO SELL CONTESTED DEALERSHIP Jan. 8, 1997
BOWDEN, ALLEN DENY CAR SALES CLAIMED BY SCHOTT Jan. 4, 1997
GM'S LIST OF 57 ALLEGEDLY FAKED SALES Jan. 4, 1997
BASEBALL TO EXAMINE GM ALLEGATIONS Jan. 2, 1997
GM SAYS SCHOTT FAKED SALES Dec. 24, 1996
