The "Lobogate" scandal involved forged academic transcripts, payments made for bogus Junior College credits, and other devices to attain eligibility for players who lacked academic credentials. In an investigation into illegal gambling, the FBI had placed a wiretap on the phone of a major Lobo booster. While Ellenberger was visiting this booster, in November 1979, he took a call on the tapped phone from assistant coach Manny Goldstein. They discussed an arrangement to transfer bogus credits from a California Junior College to the office of the UNM registrar. Based on this conversation, the FBI launched an investigation that led to a federal indictment of Ellenberger on seven counts of fraud and forgery of academic transcripts, though he was acquitted of those charges at trial. In July 1981, however, he was convicted by a state District Court on 21 of 22 counts of fraud and submitting false public vouchers. The judge deferred sentence for a year, noting that it was unfair for Ellenberger alone to bear culpability, and all counts were formally dismissed in 1983.