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 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 a fine of up to $10,000.
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 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 in 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 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