pro athletes

This Investment Is a Slam Dunk--Not.

Ordinary investors aren't the only ones who get fleeced by rogue brokers, financial scam artists, and Ponzi schemers. It also happens--quite a bit actually--to professional athletes. Just because a pro ball player is wealthy and successful thanks to athletic prowess does not mean they're a sophisticated investor. That goes for wealthy and successful people in general. In other words, and even if arbitrators and juries don't always see it this way, wealth does not equal sophistication when it comes to investments and financial products. Time and again, we have seen NBA, NHL, and MLB players targeted by false friends or fraudsters who take advantage of a pro athlete's bank account or good will. A recent piece we came across on Financial Advisor strums the same sad chord. 

In this case, FINRA (Financial Industry Regulatory Authority) put the kibosh on the activities of Success Trade Securities nd its CEO and founder, Fuad Ahmed, for fraudulent behavior in the sale of $18 million in promissory notes to 58 investors. Many of these investors were pro athletes. It's highly likely that these athletes invested in Success Trade at the behest of their brokers, who apparently didn't think to look more closely at the suspiciously high rates of interest the notes promised, nor at the legitimacy of the underlying business and its owner. What the brokers were looking at, we're pretty darn sure, was the prospect of making a quick buck off their baller clients. According to the report, the Success Trade notes "promised to pay an annual interest rate of 12.5 percent on a monthly basis over three years and some promised interest as high as 26 percent." Red flag, right there. As we've said before and we'll say again, if it sounds too good to be true... Case in point, Ahmed continued to raise funds to meet his goal of $5 million long after he'd already collected the $5 million. Plus, he gave himself "loans" and paid off new investors with previous investors' money (a Ponzi scheme in the making). Whether you're a pro athlete or an ordinary investor, don't let a broker or huckster sell you a piece of bright blue sky and or get funny with your money...

But if they do, and you become a victim of financial adviser misconduct or any other form of investment fraud, contact us for a free consultation. We may not be able to dunk a basketball, but we know how produce results when it comes to securities litigation.

SF Giants Pitcher, Barry Zito, sues for $3M

A recent lawsuit by San Francisco Giants hurler Barry Zito alleges that his friend used their relationship to mislead Zito into making a $3M investment on a fitness software startup that never materialized. We've seen misrepresentation like this before, and we're pretty sure we'll see it again. Unfortunately, pro athletes with large salaries and limited investment knowledge are highly susceptible to manipulation by stock brokers and friends alike. Precisely because they have a lot of money, they tend to be over-trusting of friends who they believe have their best interests in mind. Not always the case. And it's important to keep in mind that perpetrators of securities fraud are not always stock brokers or financial advisors--they can be anyone who enters upon a securities contract.

f you or someone you know think you've been the victim of securities fraud or misrepresentation, please The Green Firm immediately for a free consultation.

Wall Street Broker Costs NFL Players $40M

As a recent high-profile case covered widely in the media involving several NFL players reveals, broker misconduct can victimize anyone, from an isolated elderly citizen to a group of professional athletes.

FINRA has banned Wall Street broker Jeffrey Rubin from the securities industry after he allegedly lost 30 football players nearly $40 million through unsuitable investments that were shored up by kick-backs from a failed casino.

The Green Firm has successfully pursued broker misconduct cases for professional athletes in the past. If you or someone you know has been the victim of broker misconduct in the form of unsuitable investments, please contact us immediately for a free consultation.