Information overload alert: For those that aren't aware of it, Mark Morefield is the guy at the center of the issue in question. He is your classic "overzealous assistant" who made a bad decision by sending a text message to an AAU coach during a game (which was the only violation) and then amplified his mistake by sending more to the recruit in question's high school coach.
The player in question is Hanner Perea, a Colombian native whom the Baylor coaching staff discovered and secured a Visa for, in order to get him to play in America. He was "placed" at a basketball academy in Indiana (debate the ethical nature of that if you want, but it is technically within NCAA rules), with a program called AHOPE. The man who founded and runs AHOPE is Mark Adams, whose son Drew was subsequently hired to a non-coaching position at Indiana. Like clockwork, Indiana starts getting the commitment of all of the AHOPE guys, including Perea.
Morefield understandably gets upset, having doen all the legwork to get Perea to America and into a basketball academy where he could be recruited by Baylor. Knowing that Perea's guardians trust the Baylor coaching staff, and the Baylor staff only, he sends a text to Mark Adams (during his coaching of an AAU game, which is a secondary violation) stating something along the lines of "If Hanner goes anywhere else [other than Baylor, is the assumption] he's going to be back in Colombia next year, and don't you forget it."
Adams, or the Indiana staff, leaks this text (and this text only) to an Indiana paper who writes an article lambasting Baylor for "threatening to deport a player that won't sign with them," and the whole thing gets legs. NCAA gets wind of it, heads to Waco, wraps up their investigation within about a week and scurries off to Indiana to investigate AHOPE and the Drew Adams connection (Adams subsequently takes a position at New Mexico, at a pay decrease).
While the NCAA has not formally closed the investigation at either school, Morefield fell on his sword and "resigned to pursue other basketball opportunities." It's probably pretty doubtful that either school will receive more than a slap on the wrist. It's not one of our brighter moments, to be sure.
Sorry for the length.