Bad brokers are everywhere. But they tend to really grab headlines--and swindle truly staggering amounts of money--when they defraud professional athletes. We’ve featured more than one post here about individual and groups of pro ballplayers from every major sport who’ve been taken advantage of by close friends or crooked brokers. Unfortunately, so many athletes we know to be unstoppable on the field make for easy targets when it comes to their personal finances.
Just this week, news arrived that broker, Jinesh “Hodge” Brahmbhatt formerly of Success Trade Securities, Inc., who was apparently at one time “approved” by the NFL to provide investment advice to players, allegedly sold more than $18 million in bogus promissory notes to 58 different investors. Many of these investors were current or former NBA and NFL players. If you’re wondering why pro players are so susceptible to fraudulent investment schemes, think about it: usually from humble backgrounds, pro players suddenly become very rich, spend quickly, invest poorly, and lack the experience and expertise to evaluate complex financial products.
According to the report on Yahoo sports, athletes who bought the dubious Success Trade notes include Jared Odrick of the Miami Dolphins, Brandon Knight of the Detroit Pistons, Adewale Ogunleye of the Chicago Bears, former Washington Redskin Clinton Portis, the 49ers’ Vernon Davis, and Browns cornerback Joe Haden. Those close to the case expect this list to grow as other players who held the Success Trade notes lawyer up and file complaints with the Financial Regulatory Industry (FINRA). Meanwhile, Mr. Brahmbhatt, who most recently worked for investment adviser firm, Jade Private Wealth Management LLC, has been banned by FINRA.
While the life and means of pro ballplayers may seem distant and out of all proportion to ordinary investors, the lesson here is the same. Bad brokers, as Mr. Brahmbhatt certainly appears to be, are everywhere, and they can and will get over on anyone. The best way to protect yourself against broker misconduct and investment fraud is to practice a form of financial self-defense. For tips and techniques on how to do this, please download our free guide.
If you or someone you know has been the victim of broker misconduct, please contact us immediately toll-free at 1-855-462-3330 for a free consultation.