Articles Posted in Professional Athletes – Investment Fraud and Mismanagement

Professional Athletes Beware Of Placing Too Much Trust In Your Financial Advisors – South Florida Financial Advisor Litigation and Arbitration Attorney

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.

Professional Athletes – South Florida Investment Fraud Litigation and Arbitration Attorney

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

Securities and Exchange Commission v. Robert A. Gist, et al., Civil Action No. 1:13-cv-01833-AT (N.D.Ga., May 31, 2013)

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.

Jeffrey Rubin, Registered Representative, Lighthouse Point, Florida:

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.

SEC Charges College Football Hall of Fame Coach in $80 Million Ponzi Scheme

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.

Securities and Exchange Commission v. James V. Mazzo, David L. Parker and Eddie C. Murray, Case No. SACV-121327JST-(JPRX) (C.D. Cal. Aug. 17, 2011)


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 FINRA Foundation and the NFL Have Up to Help Incoming Players Avoid Investment Fraud and Make Smart Financial Decisions

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

Michael Vick’s ex-advisor, Mary Wong sentenced to more than five years in prison for running a Ponzi scheme.

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.

Investment Concerns for Professional Athletes

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.

Contact Information