SEC: Financial Adviser Defrauded Pro Athletes and Lied to SEC Examiners

The Securities and Exchange Commission recently announced fraud charges against a Pittsburgh, Pa.-based financial adviser accused of taking money without permission from the accounts of several professional athletes in order to invest in movie projects and make Ponzi-like payments.

According to the SEC’s complaint filed today in federal court in Manhattan, when SEC examiners uncovered the unauthorized withdrawals that Louis Martin Blazer III made from his clients’ accounts and asked him to explain the transactions, he lied and produced false deal documents that he created after the fact in a failed attempt to hide his misconduct.

The SEC alleges that Blazer, who founded Blazer Capital Management as a “concierge” firm targeting professional athletes and other high-net worth individuals as clients, took approximately $2.35 million from five clients without their authorization so he could invest in two movie projects. Blazer had a personal financial interest in the development of both films, one called “Mafia the Movie” and the other called “Sibling.” In one instance, Blazer actually pitched the movie project to an athlete as an investment opportunity, but that client expressly refused to make the investment. Blazer allegedly took $550,000 from the client’s account anyway and invested the money in the film projects.

The SEC further alleges that the client later learned about Blazer making the unauthorized investment in the movies and demanded repayment, even threatening a lawsuit. Blazer then took money out of a different athlete’s account to make the repayment in Ponzi-like fashion.

Blazer has agreed to settle the charges without admitting or denying the allegations. The settlement is subject to court approval with determination of disgorgement and financial penalties to be decided by the court at a later date. The SEC’s complaint charges Blazer with violations of Sections 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, and Section 206(1) and 206(2) of the Investment Advisers Act of 1940.

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With extensive courtroom, arbitration and mediation experience and an in-depth understanding of elder abuse, exploitation and securities law, our firm provides all of our clients with the personal service they deserve. Handling cases worth $25,000 or more, we represent clients throughout Florida and across the United States, as well as for foreign individuals that invested in U.S. banks or brokerage firms. Contact us to arrange your free initial consultation.

At the Boca Raton Law Office of Russell L. Forkey, we represent clients throughout South and Central Florida, including Fort Lauderdale, West Palm Beach, Boca Raton, Sunrise, Plantation, Coral Springs, Deerfield Beach, Pompano Beach, Delray, Boynton Beach, Hollywood, Lake Worth, Royal Palm Beach, Manalapan, Jupiter, Gulf Stream, Wellington, Fort Pierce, Stuart, Palm City, Jupiter, Miami, Orlando, Maitland, Winter Park, Altamonte Springs, Lake Mary, Heathrow, Melbourne, Palm Bay, Cocoa Beach, Vero Beach, Daytona Beach, Deland, New Smyrna Beach, Ormand Beach, Broward County, Palm Beach County, Dade County, Orange County, Seminole County, Martin County, Brevard County, Indian River County, Volusia County and Monroe County, Florida. The law office of Russell L. Forkey also represents South American, Canadian and other foreign residents that do business with U.S. financial institutions, investment advisors, brokerage and precious metal firms.

Securities and Exchange Commission v. Capital Financial Partners, LLC et al., Civil Action No. 15-cv-11447-IT

SEC Obtains Asset Freezes in Ponzi Scheme Involving Loans to Professional Athletes

The Securities and Exchange Commission recently announced fraud charges against a former professional football player and others, alleging they operated a Ponzi scheme that raised more than $31 million from investors who were promised profits from loans to professional athletes.

The SEC’s complaint was unsealed late yesterday after being filed in federal court in Boston on April 1. The court entered asset freezes and other preliminary relief that same day against the defendants.

According to the SEC’s complaint, former professional football player William D. Allen and his business partner Susan C. Daub claimed to make loans to professional athletes who were short of cash. Allen and Daub told investors that they could profit by funding the loans and receiving interest of up to 18 percent paid by the athletes. The complaint alleges that from July 2012 through February 2015, the defendants paid approximately $20 million to investors while receiving a little more than $13 million in loan repayments from athletes. To fill the nearly $7 million gap, Allen and Daub used money from some investors to pay other investors, the hallmark of a Ponzi scheme.

The SEC’s complaint alleges that Allen of Davie, Fla., and Daub, a financial professional formerly of Acton, Mass. who now lives in Coral Springs, Fla, advanced approximately $18 million to athletes while raising more than $31 million from investors. Allen and Daub allegedly misled investors about the terms, circumstances, and even the existence of some of the loans and used some investor funds to pay personal expenses such as charges at casinos and nightclubs, or to fund other business ventures.

The SEC’s complaint alleges that Allen, Daub, Florida-based Capital Financial Partners Enterprises LLC, and Boston-based Capital Financial Partners LLC and Capital Financial Holdings LLC violated federal anti-fraud laws and related SEC anti-fraud rules. In addition to the relief obtained last week, the SEC is seeking a court order to restrain the defendants from violating the same laws and to require them to return their allegedly ill-gotten gains with interest and pay civil monetary penalties.

Four other entities owned or controlled by Allen, Daub, or both are named in the complaint as relief defendants based on their receipt of investor funds. The SEC is seeking to have the entities – WJBA Investments LLC, Insurance Depot of America LLC, Simplified Health Solutions LLC, and Simplified Health Solutions 2 LLC – return their allegedly ill-gotten gains with interest.

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With extensive courtroom, arbitration and mediation experience and an in-depth understanding of elder abuse, exploitation and securities law, our firm provides all of our clients with the personal service they deserve. Handling cases worth $25,000 or more, we represent clients throughout Florida and across the United States, as well as for foreign individuals that invested in U.S. banks or brokerage firms. Contact us to arrange your free initial consultation.

At the Boca Raton Law Office of Russell L. Forkey, we represent clients throughout South and Central Florida, including Fort Lauderdale, West Palm Beach, Boca Raton, Sunrise, Plantation, Coral Springs, Deerfield Beach, Pompano Beach, Delray, Boynton Beach, Hollywood, Lake Worth, Royal Palm Beach, Manalapan, Jupiter, Gulf Stream, Wellington, Fort Pierce, Stuart, Palm City, Jupiter, Miami, Orlando, Maitland, Winter Park, Altamonte Springs, Lake Mary, Heathrow, Melbourne, Palm Bay, Cocoa Beach, Vero Beach, Daytona Beach, Deland, New Smyrna Beach, Ormand Beach, Broward County, Palm Beach County, Dade County, Orange County, Seminole County, Martin County, Brevard County, Indian River County, Volusia County and Monroe County, Florida. The law office of Russell L. Forkey also represents South American, Canadian and other foreign residents that do business with U.S. financial institutions, investment advisors, brokerage and precious metal firms.

SEC Charges Atlanta Attorney with Converting Investor Funds

Recently, the Securities and Exchange Commission charged Robert A. Gist (“Gist”), an Atlanta attorney and former sports agent, and Gist, Kennedy & Associates, Inc. (“Gist Kennedy”) (collectively, “Defendants”), a company that Gist controls, with defrauding at least 32 customers out of at least $5.4 million while acting as an unregistered broker from approximately 2003 to the present.

According to the SEC’s complaint filed in the U.S. District Court for the Northern District of Georgia, Gist obtained the customers’ funds on the fraudulent pretense that he would invest conservatively on their behalves in corporate bonds and other securities. The complaint alleges that Gist invested none of the customer funds, but, instead, used the funds for his personal expenses, for the payment of purported dividends and proceeds from securities sales that he falsely claimed to have purchased on behalf of his customers, and for the operation of a company that he controlled until early 2013 known as ENCAP Technologies, LLC. The complaint further alleges that Gist regularly created and provided the customers of Gist Kennedy with fictitious account statements.

The complaint alleges that Gist used at least $2.2 million of the converted customer funds for the operation of ENCAP Technologies, LLC (“ENCAP”) during the time that he controlled ENCAP, and that the company gave nothing of value in return for the money. The complaint names ENCAP as a relief defendant and seeks disgorgement from it of unjust enrichment in the amount of at least $2.2 million plus prejudgment interest.

Without admitting or denying the SEC’s allegations, Defendants Gist and Gist Kennedy agreed to settle the case against them. The settlement is pending final approval by the court. Specifically, the Defendants consented to the entry of an order permanently enjoining Defendants Gist and Gist Kennedy from future violations of Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rules 10b-5 thereunder; permanently enjoining Gist from future violations of Section 15(a) of the Exchange Act; finding Defendants jointly and severally liable for $5.4 million in disgorgement plus prejudgment interest, imposing civil penalties to be determined upon motion of the Commission, freezing the Defendants’ assets, and providing other relief.

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With extensive courtroom, arbitration and mediation experience and an in-depth understanding of securities law, our firm provides all of our clients with the personal service they deserve. Handling cases worth $25,000 or more, we represent clients throughout Florida and across the United States, as well as for foreign individuals that invested in U.S. banks or brokerage firms. Contact us to arrange your free initial consultation.

At the Fort Lauderdale Law Office of Russell L. Forkey, we represent clients throughout South and Central Florida, including Fort Lauderdale, West Palm Beach, Boca Raton, Sunrise, Plantation, Coral Springs, Deerfield Beach, Pompano Beach, Delray, Boynton Beach, Hollywood, Lake Worth, Royal Palm Beach, Manalapan, Jupiter, Gulf Stream, Wellington, Fort Pierce, Stuart, Palm City, Jupiter, Miami, Orlando, Maitland, Winter Park, Altamonte Springs, Lake Mary, Heathrow, Melbourne, Palm Bay, Cocoa Beach, Vero Beach, Daytona Beach, Deland, New Smyrna Beach, Ormand Beach, Broward County, Palm Beach County, Dade County, Orange County, Seminole County, Martin County, Brevard County, Indian River County, Volusia County and Monroe County, Florida. The law office of Russell L. Forkey also represents South American, Canadian and other foreign residents that do business with U.S. financial institutions, investment advisors, brokerage and precious metal firms.

FINRA Bars Florida Broker for Unsuitable Recommendations and Unapproved Securities Transactions Involving 31 NFL Players

The Financial Industry Regulatory Authority (FINRA) recently announced that it has barred broker Jeffrey Rubin of Lighthouse Point, Florida, from the securities industry for making unsuitable recommendations to his customer, an NFL player, to invest in illiquid, high-risk securities issued in connection with a now-bankrupt casino in Alabama. As a result, the customer lost approximately $3 million. Based on Rubin’s referrals, 30 other NFL players also invested in the casino project and lost approximately $40 million. Rubin also failed to obtain the required approval from his employers to participate in the securities transactions involving the casino.

Rubin operated a Florida-based company, Pro Sports Financial, which provided financial-related “concierge” services to professional athletes for an annual fee. Between March 2006 and June 2008, while he was registered as a broker at Lincoln Financial Advisors Corporation and Alterna Capital Corporation, Rubin recommended that one of his NFL clients invest a total of $3.5 million, the majority of his liquid net worth, in four high-risk securities. Rubin recommended and facilitated the largest investment, $2 million, in the Alabama casino project without informing his employer member firm or receiving the firm’s approval of this activity.

Rubin referred other investors to the casino project while employed by Alterna Capital Corporation and International Assets Advisory, LLC without the firms’ knowledge or approval. FINRA found that from approximately January 2008 through March 2011, 30 additional clients of Rubin’s concierge firm, all NFL players, invested approximately $40 million in the casino project. Rubin received a 4 percent ownership stake and $500,000 from the project promoter for these referrals.

Apparently, in settling this matter, Rubin neither admitted nor denied the charges, but consented to the entry of FINRA’s findings.

Additional information will ultimately be available on the FINRA BrokerCheck website.

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With extensive courtroom, arbitration and mediation experience and an in-depth understanding of securities law, our firm provides all of our clients with the personal service they deserve. Handling cases worth $25,000 or more, we represent clients throughout Florida and across the United States, as well as for foreign individuals that invested in U.S. banks or brokerage firms. Contact us to arrange your free initial consultation.

At the Fort Lauderdale Law Office of Russell L. Forkey, we represent clients throughout South and Central Florida, including Fort Lauderdale, West Palm Beach, Boca Raton, Sunrise, Plantation, Coral Springs, Deerfield Beach, Pompano Beach, Delray, Boynton Beach, Hollywood, Lake Worth, Royal Palm Beach, Manalapan, Jupiter, Gulf Stream, Wellington, Fort Pierce, Stuart, Palm City, Jupiter, Miami, Orlando, Maitland, Winter Park, Altamonte Springs, Lake Mary, Heathrow, Melbourne, Palm Bay, Cocoa Beach, Vero Beach, Daytona Beach, Deland, New Smyrna Beach, Ormand Beach, Broward County, Palm Beach County, Dade County, Orange County, Seminole County, Martin County, Brevard County, Indian River County, Volusia County and Monroe County, Florida. The law office of Russell L. Forkey also represents South American, Canadian and other foreign residents that do business with U.S. financial institutions, investment advisors, brokerage and precious metal firms.

August, 2012:

The Securities and Exchange Commission recently announced fraud charges against a former college football coach who teamed with an Ohio man to conduct an $80 million Ponzi scheme that included other college coaches and former players among its victims.

The SEC alleges that Jim Donnan, a College Football Hall of Fame inductee who guided teams at Marshall University and the University of Georgia and later became a television commentator, conducted the fraud with his business partner Gregory Crabtree through a West Virginia-based company called GLC Limited. Donnan and Crabtree told investors that GLC was in the wholesale liquidation business and earning substantial profits by buying leftover merchandise from major retailers and reselling those discontinued, damaged, or returned products to discount retailers. They promised investors exorbitant rates of return ranging from 50 to 380 percent. However, only about $12 million of the $80 million raised from nearly 100 investors was actually used to purchase leftover merchandise, and the remaining funds were used to pay fake returns to earlier investors or stolen for other uses by Donnan and Crabtree.

According to the SEC’s complaint filed in federal court in Atlanta, the scheme began in August 2007 and collapsed in October 2010. Donnan recruited the majority of investors by approaching contacts he made as a sports commentator and as a coach. For instance, he capitalized on his influence over one former player by telling him, “Your Daddy is going to take care of you” … “if you weren’t my son, I wouldn’t be doing this for you.” The player later invested $800,000.

The SEC’s complaint alleges that Donnan touted GLC’s success and profitability and told investors that the company could enter into even more merchandise deals with more capital. Donnan and Crabtree offered and sold investments that were short-term (2 to 12 months) and purportedly high-yield, with returns paid to investors in monthly or quarterly installments or in a one-time payment. Donnan told investors their money was being used to purchase specific items of merchandise that was often presold, so there was little to no risk to investing in any deal. However, much of the merchandise that GLC actually purchased was merely left unsold and abandoned in warehouses in West Virginia and Ohio.

The SEC alleges that Donnan typically assured investors that he was investing along with them in any merchandise deal that he offered. He touted that he and other prominent college football coaches had successfully and profitably invested in GLC. But by the time the scheme collapsed, Donnan had actually siphoned more than $7 million away from GLC, and Crabtree misappropriated approximately $1.08 million in investor funds.

The SEC’s complaint charges Donnan, who lives in Athens, Ga., and Crabtree, who resides in Proctorville, Ohio, with violations of the antifraud and registration provisions of the federal securities laws. The complaint also names two of Donnan’s children and his son-in-law as relief defendants for the purpose of recovering illicit funds that Donnan steered to them.

NEW CHARGES IN INSIDER TRADING CASE INCLUDE FORMER CEO AND PROFESSIONAL BASEBALL PLAYER

The Securities and Exchange Commission recently announced a second round of charges in an insider trading case involving former professional baseball players and the former top executive at a California-based medical eye products company that was the subject of the illegal trading.

The SEC brought initial charges in the case last year, accusing former professional baseball player Doug DeCinces and three others of insider trading on confidential information ahead of an acquisition of Advanced Medical Optics Inc. DeCinces and his three tippees made more than $1.7 million in illegal profits, and they agreed to pay more than $3.3 million to settle the SEC’s charges.

Now the SEC is charging the source of those illegal tips about the impending transaction – DeCinces’s close friend and neighbor James V. Mazzo, who was the Chairman and CEO of Advanced Medical Optics. The SEC also is charging two others who traded on inside information that DeCinces tipped to them – DeCinces’ former Baltimore Orioles teammate Eddie Murray and another friend David L. Parker, who is a businessman living in Utah.

The SEC alleges that Murray made approximately $235,314 in illegal profits after Illinois-based Abbott Laboratories Inc. publicly announced its plan to purchase Advanced Medical Optics through a tender offer. Murray agreed to settle the SEC’s charges by paying $358,151. The SEC’s case continues against Parker and Mazzo, the latter of whom was directly involved in the tender offer and tipped the confidential information to DeCinces along the way.

According to the SEC’s complaint filed in U.S. District Court for the Central District of California, the total unlawful profits resulting from Mazzo’s illegal tipping was more than $2.4 million. Once Mazzo began tipping DeCinces with confidential information about the upcoming transaction, DeCinces soon began to purchase Advanced Medical Optics stock in several brokerage accounts. DeCinces bought more and more shares as the deal progressed and as he continued communicating with Mazzo. DeCinces tipped at least five others who traded on the inside information, including Murray, Parker, and the three traders who settled their charges along with DeCinces last year – physical therapist Joseph J. Donohue, real estate lawyer Fred Scott Jackson, and businessman Roger A. Wittenbach.

According to the SEC’s complaint, Mazzo and DeCinces had been close friends for quite some time and lived in the same exclusive gated community in Laguna Beach, Calif. They socialized together with their wives, belonging to the same Orange County country club and vacationing together overseas. They also communicated frequently by e-mail and through phone calls. Mazzo invested in the restaurant business of DeCinces’ son, and DeCinces’ daughter provided interior decorating services for Mazzo and his wife. Mazzo was directly involved in the impending Advanced Medical Optics/Abbott transaction from its inception in October 2008. With knowledge of confidential information about the deal and his duty not to disclose it, Mazzo illegally tipped DeCinces, who made significant purchases of Advanced Medical Optics shares on Nov. 5, 2008, and continuing up until and near the time of the public announcement of the acquisition.

The SEC alleges that Parker and DeCinces had been friends and business associates at the time of the illegal trading. Between Jan. 6 and Jan. 8, 2009, Parker bought 25,000 shares of Advanced Medical Optics stock on the basis of confidential information received from DeCinces about the impending transaction. Parker made approximately $347,920 when he sold the stock on the same day as the public announcement. Meanwhile on January 7, Murray used all of the available cash in his self-directed brokerage account to purchase 17,000 shares of Advanced Medical Optics stock on the basis of the confidential information that DeCinces communicated to him. Murray sold all of his shares following the public announcement.

Murray agreed to settle the charges against him without admitting or denying the SEC’s allegations by consenting to the entry of a final judgment permanently enjoining him from violating Sections 10(b) and 14(e) of the Securities Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder. Murray agreed to pay disgorgement of $235,314, prejudgment interest of $5,180, and a penalty of $117,657 for a total of $358,151. The settlement is subject to final approval by the court.

WASHINGTON – The Financial Industry Regulatory Authority (FINRA) Investor Education Foundation and the National Football League (NFL) announced that they are working together to help incoming NFL players spot and avoid investment fraud and begin their playing careers by making informed financial decisions. This joint FINRA Foundation/NFL initiative will reach prospective NFL players and their families as they prepare for two upcoming key events:

The East/West Shrine Game in Orlando, Florida, on January 22
Under Armour Senior Bowl in Mobile, Alabama, on January 29

Players will learn how to choose the right financial professional and how to do a background check. Players also will learn about the risks of taking on debt. NFL Player Development and NFL Security, in collaboration with the FINRA Foundation, have launched this initiative to reach players at these events through 60- minute presentations, along with information booths in main traffic areas that will provide FINRA Foundation and NFL resources.

“We are pleased to be working with the FINRA Foundation to provide our prospective players with the tools to build a solid financial future,” said Adolpho Birch, NFL Senior Vice President of Labor Policy and Player Development. “It’s never too early to learn, and I am pleased that, together with NFL Security, we will be able to reach these players and their families at this important time in their lives.”

The FINRA Foundation will present its Outsmarting Investment Fraud (OIF) curriculum at each of these events to both players and their parents. A key feature of the OIF curriculum is an explanation of the psychological persuasion tactics con artists use to get their victims to make emotional rather than logical investment decisions. For players, understanding these psychological tactics and how they can be used against investors can help them to avoid becoming a con artist’s next victim. The educational curriculum that will be delivered at these NFL events has been tested and shown to reduce susceptibility to investment fraud by over 50 percent among participants.

“It is critically important that players make informed financial decisions at the beginning of their careers,” said Rick Ketchum, Chairman of the FINRA Investor Education Foundation. “Working with the NFL, we hope to reach these players and give them the information and insight they need to avoid financial pitfalls.”

NFL Player Development and NFL Security are working together to tackle the problems posed by a lack of knowledge about how to manage the financial advisor selection process. The NFL’s work with the FINRA Foundation will bring needed resources and tools to players and their families so that they can protect themselves from fraudulent and deceptive practices.

The FINRA Investor Education Foundation is the largest foundation in the United States dedicated to investor education. Its mission is to provide investors with high-quality, easily accessible information and tools to better understand the markets and the basic principles of saving and investing.

NFL Player Development prepares and supports players mentally, emotionally and physically for life on the gridiron and during their transition to post-football careers. Through programming like NFL Prep, NFL Life, and NFL Next, the NFL Player Development department assists players in adjusting to life within the NFL, while challenging them to prepare for their next careers after their football-playing days are through.

As a professional athlete, you are exposed to financial issues that are much different from those faced by the average investor. A professional athlete’s career is much shorter than the average investor. The major difference is that the peak earning years, of a professional athlete, are typically in their 20’s or 30’s, while the general public’s peak earning years occur later in life.

What complicates the financial issues facing professional athletes is the amount of peer pressure that they are exposed to to live a certain lifestyle or to have “family and friends” make financial decisions for them, even though they are probably not qualified to do so.

Consider the difference between an average individual vs. a professorial athlete:

The average individual:
Will have lifetime earnings between $1.5 million and $3 million.
Will work 35 to 45 years.
Will enjoy peak earnings during the five years just prior to retirement.
Will allow circumstances to determine his or her lifestyle.

The average professional athlete:
Will enjoy lifetime earnings between $5 million and $25 million.
Will work for 35 to 45 years; however, his or her career in professional sports will only last 6 to 10 years and will be over before he or she reaches age 40.
Will enjoy peak earnings before age 35. In fact, they will likely earn 70 percent to 90 percent of their lifetime earnings before age 35.
Will also allow circumstances to determine lifestyle (only to discover the lifestyle adopted as an athlete cannot be sustained once the professional sports career is over. The resulting “adjustments” are often dramatic and usually humbling).

Consequently, as a result of the above, it is important for athletes to invest in safe, conservative investments. However, the overwhelming nature of the investments presented to athletes are such things as tax shelters, limited partnerships or other illiquid investments that carry with them substantial risk and large commissions some of which may make their way back to the unscrupulous agent or manager. Importantly, one of the most responsible things that an athlete or agent can do, is to set up a proper financial plan to ensure the long term economic stability of the athlete.

If you are a professional athlete, agent or family member of an athlete and believe that inappropriate investments were fraudulently or negligently recommended to the athlete, immediate action must be taken to attempt to recoup these investment losses.

Contact Us
With extensive courtroom, arbitration and mediation experience and an in-depth understanding of securities law, our firm provides all of our clients with the personal service they deserve. Handling cases worth $25,000 or more, we represent clients throughout Florida and across the United States, as well as for foreign individuals that invested in U.S. banks or brokerage firms. Contact us to arrange your free initial consultation.

At the Fort Lauderdale Law Office of Russell L. Forkey, we represent clients throughout South and Central Florida, including Fort Lauderdale, West Palm Beach, Boca Raton, Sunrise, Plantation, Coral Springs, Deerfield Beach, Pompano Beach, Delray, Boynton Beach, Hollywood, Lake Worth, Royal Palm Beach, Manalapan, Jupiter, Gulf Stream, Wellington, Fort Pierce, Stuart, Palm City, Jupiter, Miami, Orlando, Maitland, Winter Park, Altamonte Springs, Lake Mary, Heathrow, Melbourne, Palm Bay, Cocoa Beach, Vero Beach, Daytona Beach, Deland, New Smyrna Beach, Ormand Beach, Broward County, Palm Beach County, Dade County, Orange County, Seminole County, Martin County, Brevard County, Indian River County, Volusia County and Monroe County, Florida. The law office of Russell L. Forkey also represents South American, Canadian and other foreign residents that do business with U.S. financial institutions, investment advisors, brokerage and precious metal firms.

A former financial adviser to Michael Vick and several other NFL players has been sentenced to more than five years in prison for stealing more than $3 million from the players in a Ponzi scheme.

U.S. Attorney Deborah Gilg said Mary Wong of Omaha was sentenced Monday to 63 months in prison for securities fraud. Wong pleaded guilty in September of 2010. She was ordered to pay more than $3 million in restitution and serve 3 years supervised released.

Prosecutors say Wong worked out of her Omaha home and purported to sell investments in luxury properties in Arizona, Tennessee and Michigan along with private jets and other investments. Prosecutors say many investments never existed. Instead, they say, Wong used the money to support her other businesses and a lavish lifestyle.

Court documents show that that Mr. Vick believes he gave about $550,000 to Ms. Wong. Mr. Vick’s attorneys said the controversial NFL quarterback gave Ms. Wong a general power of attorney so she could manage his assets while he was serving time in federal prison for running an illegal dogfighting ring.

Three other NFL players — Demorrio Williams of the Kansas City Chiefs and twins Josh Bullocks of the Chicago Bears and Daniel Bullocks of the Detroit Lions — were partners with Wong in Williams & Bullocks LLC. All three played at the University of Nebraska. None of three men were accused of wrongdoing in the case.

The grant of a general, durable power of attorney to a third party is usually not a good idea under any set of circumstances. Especially, if there is no reason to do so.

Contact Us
With extensive courtroom, arbitration and mediation experience and an in-depth understanding of securities law, our firm provides all of our clients with the personal service they deserve. Handling cases worth $25,000 or more, we represent clients throughout Florida and across the United States, as well as for foreign individuals that invested in U.S. banks or brokerage firms. Contact us to arrange your free initial consultation.

At the Fort Lauderdale Law Office of Russell L. Forkey, we represent clients throughout South and Central Florida, including Fort Lauderdale, West Palm Beach, Boca Raton, Sunrise, Plantation, Coral Springs, Deerfield Beach, Pompano Beach, Delray, Boynton Beach, Hollywood, Lake Worth, Royal Palm Beach, Manalapan, Jupiter, Gulf Stream, Wellington, Fort Pierce, Stuart, Palm City, Jupiter, Miami, Orlando, Maitland, Winter Park, Altamonte Springs, Lake Mary, Heathrow, Melbourne, Palm Bay, Cocoa Beach, Vero Beach, Daytona Beach, Deland, New Smyrna Beach, Ormand Beach, Broward County, Palm Beach County, Dade County, Orange County, Seminole County, Martin County, Brevard County, Indian River County, Volusia County and Monroe County, Florida. The law office of Russell L. Forkey also represents South American, Canadian and other foreign residents that do business with U.S. financial institutions, investment advisors, brokerage and precious metal firms.