In 1996, Sheldon Kennedy and another unnamed player came forward with complaints about sexual abuse they had suffered between 1984 and 1995, and on November 22, 1996, Calgary Police Service charged James with sexual assault. On January 2, 1997, James pleaded guilty to two counts of sexual assault involving more than 350 encounters with two underage players over a span of 10 years, and was sentenced to three and a half years in jail. He was paroled in 2001. The players referred to whomever James targeted as "Graham's new favourite". James was charismatic and consistently successful as a coach. Even during his investigation, he was able to secure character references from respected hockey people and former players. He claimed that his relationship with Sheldon Kennedy was consensual and it was not illegal or immoral. James noted that he was attracted to males, primarily between the ages of 15 and 25, but kept these feelings closeted.