In a reversal of the typical story that grabs the headlines, former NFL linebacker Mychal Kendricks and former Goldman Sachs banker Damilare Sonoiki have been charged with insider trading over profits totally approximately $1.2 million.
Professional athletes offer fraudulent advisors, brokers, friends, and family an irresistible target for their schemes. The typical pro athlete is young and, as an investor, woefully unsophisticated. They also have a lot of money which needs investing. No wonder every few months or even weeks, we read another story about pro athletes getting swindled.
The Financial Industry Regulatory Authority (FINRA), the watchdog for the securities industry, operates a Yelp or Angie’s List-style database called BrokerCheck. This powerful resource compiles accreditation, work history, and perhaps most importantly customer dispute history on all 650,000 or so registered financial advisors in this country.