Ex-USA Gymnastics CEO Arrested On Evidence Tampering Charge

GATLINBURG, TN — The United States Marshals Smoky Mountain Fugitive Task Force arrested the former president of USA Gymnastics Wednesday in Gatlinburg, Tennessee on a warrant, less than three weeks after he was indicted in Texas by a grand jury for tampering with evidence in the investigation of Dr. Larry Nassar, Walker County, Texas court documents said. According to a report from Walker County Criminal District Attorney David P. Weeks, Steve Penny is accused of removing documents related to the sexual assault investigation against Nassar from the Karolyi Ranch in Walker County in an effort to hinder the investigation.

Weeks said according to the felony indictment, several sources claimed during an investigation by the Texas Rangers and the Walker County Sheriff’s Office that Penny demanded the documents be removed from the ranch after he learned an investigation was underway, adding that the documents were delivered to Penny at the USAG Headquarters in Indianapolis.

According to the indictment, the records haven't been recovered, and their location is unknown.

The Texas Rangers and detectives believe the documents removed by Penny prevented them from reviewing material which would have helped them with their investigation of Nassar and an investigation of other possible offenses at the ranch.

>>Read Bono's full letter of resignation and the USA Gymnastics Board of Directors' statement: Mary Bono Resigns As Interim USA Gymnastics President

If convicted of tampering with evidence, Penny could serve two to 10 years in prison and have to pay up to a $10,000 fine.

The news of Penny's arrest comes just days after interim president and CEO of USA Gymnastics Mary Bono resigned less than a week after she was given the position. Bono resigned following controversy over an anti-Nike tweet and her former law firm's role in representing the organization when Larry Nassar was under investigation for sexual abuse allegations.

My teammates & I reported Nassar's abuse to USAG in 2015. We now know USOC & lawyers at Faegre Baker Daniels (Mary Bono's firm) were also told then, yet Nassar continued to abuse children for 13 months!? Why hire someone associated with the firm that helped cover up our abuse?
— Alexandra Raisman (@Aly_Raisman) October 15, 2018

(Photo credit: Carolyn Kaster, Associated Press)