CRIMINAL DISTRICT ATTORNEY

WALKER COUNTY, TEXAS

DAVID P. WEEKS

PRESS RELEASE
FOR IMMEDIATE RELEASE

On September 28, 2018, a Walker County Grand Jury convened to continue their ongoing
investigation of the Karolyi Ranch and those individuals who may have committed offenses
related to the conduct of Dr. Larry Nassar at that location.

The grand jury returned the following indictment:

Steve Penny
Tampering with Evidence – Third Degree Felony

Upon indictment, the 278th Judicial District Court issued a warrant for Penny’s arrest in Cause
Number 28849. If convicted, the range of punishment is 2 to 10 years in prison and up to a
$10000 fine.

According to the indictment, Steve Penny, the former president of USA Gymnastics, is alleged
to have tampered with evidence during the investigation of sexual assault allegations against
Dr. Larry Nassar. The indictment alleges that Penny ordered the removal of documents from
the Karolyi Ranch in Walker County, Texas that were related to the activities of Nassar at the
ranch. The indictment further alleges that the removal of the documents was done for the
purpose of impairing the ongoing investigation by destroying or hiding the documents.
During the investigation by the Texas Rangers and the Walker County Sheriff’s Office, several
sources reported that Penny ordered the removal of the documents from the ranch after
learning that an investigation was underway. The investigation revealed that the documents
were delivered to Penny at the USAG Headquarters in Indianapolis, Indiana. To date, those
records have not been recovered and the location of the records is unknown. The Texas
Rangers and the detectives believe that those records are material to their investigation and that
the removal of the records by Penny prevented them from reviewing documents that would
have helped in their investigation of Nassar as well as assisted with the investigation of other
offenses that may have occurred at the Karolyi Ranch.

On October 17, 2018, the United States Marshals Smoky Mountain Fugitive Task Force
arrested Penny in Gatlinburg, Tennessee. He is currently being held there awaiting extradition
to Walker County, Texas. The Walker County District Attorney’s Office, the Walker County
Sheriff’s Office and the Texas Rangers appreciate the assistance of the US Marshals in locating
Penny.

1036 11TH STREET  P.O. BOX 1659  HUNTSVILLE, TEXAS 77340  (936)435-2441  FAX: (936)435-2449