Posted April 17, 2013

Report: Federal investigators probing alleged $18 million scam involving NFL and NBA players

NBA, NFL
Pistons guard Brandon Knight is among several athletes alleged to buy fraudulent promissory notes from Success Trade.  (B. Sevald/Einstein/NBA/Getty Images)

Pistons guard Brandon Knight is among several athletes alleged to buy fraudulent promissory notes from Success Trade. (B. Sevald/Einstein/NBA/Getty Images)

Federal investigators are looking to talk to multiple NFL and NBA players concerned that they may have been ensnared in an $18 million investment scheme, reports Yahoo! Sports.

The U.S. Department of Justice, the Federal Bureau of Investigation and the U.S. Securities and Exchange Commission are heading up the investigation saying that Jade Management had more than 30 athletes who purchased high interest investments. Those investments are thought to be fraudulent.

Jade Management previously managed finances for professional athletes and had investment ties to Success Trade, according to the report. That firm has come under scrutiny lately from the Financial Industry Regulatory Authority (FINRA). Some of those investments purportedly generated interest returns between 11 and 26 percent.

From Yahoo! Sports:

During an 18-month investigation, Yahoo! Sports identified multiple athletes that purchased promissory notes from Success Trade. Among them were Detroit Pistons guard Brandon Knight, Cleveland Browns cornerback Joe Haden, San Francisco 49ers tight end Vernon Davis, former Washington Redskins running back Clinton Portis and former Chicago Bears defensive end Adewale Ogunleye.


9 comments
Lamar2
Lamar2

Yeah, and they need to educate others ie the ones who were flocked by Bernie Madoff and others; not just the  young and sports figures get duped in these scams.  If it's too good to be true.........................RUN!! And that goes across all culture barriers.

lulu9er@yahoo.com
lulu9er@yahoo.com

The leagues need to "Educate" new young players when they first report to camp and maybe earlier. Bring in their parents too. The first thing to tell them is how lucky they are to be in the majors. Show them the "Stats Of Life" of a carrier in professional sports. 4 years? Tell them NFL means Not For Long. Show them they're in the 1% of all the guys playing collage and high school ball. They made it and their friends didn't. Then show them all the ways guys in the past "Blew their MONEY."  Like restaurants and bars, fast cars, bowling alleys, gold mines in Alaska, car washes in the Bronx, car dealerships in Texas. Bring in former players and coaches to warn them of the "Easy" ways Conmen take candy from babies. It may not work but they can try. The N.F.L. can at least try. The N.B.A. can at least try. The M.L.B. can at least try. What they need is a financial mentor and a prayer. They don't pay the mentor the leagues should pay. That way the mentor is free to speak the truth. Warren Buffet knows people who could financially mentor and the Commissioners know Warren.

Anaximenes1
Anaximenes1

I'd like to get me some of those 11%-26% guaranteed returns!!  where do I sign up??

OraPike
OraPike

when will the pro's have solid financial planning for these kids who sign for millions? something like 90% are broke 5 years after they retire---then they sue the league because football is dangerous? ALL these kids need to have 50% go into a trust fund that cannot be touched until 5 years after they are out of sports and then they only get the income from the trust until age 65. How about getting warren buffet to help? but never risk their  money. When a 20 year old kid who never owned his own car---gets millions what would you expect? Agents need to be a thing of the past.

StephenGrange
StephenGrange

Greed for higher interest rates?

 

Greed is still not "good" kiddies!

lelandb92
lelandb92

If this was a scam then this is the second scam that Clinton Portis has been involved in.

nfinitwordsfoto
nfinitwordsfoto

 @OraPike If they did the required trust fund (which would be illegal anyway) the players would then be targets for high-interest loans to get the money in advance like they do with lottery and lawsuit winners who are getting guaranteed annuities.  It just wouldn't help.  They need to be educated and there needs to be a culture change.