Articles

Break into Sports or Broke out of Sports?

Over the last few years, some of the biggest Ponzi schemers in American history have been uncovered and exposed. Athletes are attractive targets in these Ponzi schemes, given the recent spikes in athlete pay within the NFL, NBA, MLB and NHL. Others have been duped through inappropriate, misguided or unlawful advice by financial advisors, agents or other various family members. With that said, perhaps the best person to trust for investments is one who has been in that athlete’s shoes in his/her initial career? Not so fast, my friend.

On April 1, 2015, the Securities and Exchange Commission (“SEC”) filed a complaint against Will Allen, a cornerback who played for the Giants, Dolphins, and Patriots. The complaint alleges that Allen and Florida woman, Susan Daub, ran a Ponzi scheme by using “false documentation in order to mislead investors as to the terms, circumstances, and even existence of some of the loan transaction in which the investors are induced to participate.” The complaint additionally alleges that Allen and Daub offered shoddy loans to athletes, raised money from investors, and put that money to personal use.

This case is still pending.


While this and other highly publicized cases may instill fear into a professional athlete and his/her willingness to seek financial opportunities, athletes need to be able to make investments and feel confident that they someone they trust is able to properly review the investment documents and conduct due diligence of the companies to make sure that they are actually in existence. Feel free to contact Jeff Kominsky or any of our business lawyers to discuss prospective issues and investments for athletes or non-athletes.

Related Practices


Related Attorneys

Find an Attorney

Each of the firm's offices include partners, associates and a professional staff dedicated to meeting the challenge of providing the firm's clients with extraordinary service.