Washington RIA found guilty of ripping off Mike Tyson

The second shoe has dropped in the case of Brian Ourand, a former registered investment adviser in Washington, D.C.

Mr. Ourand, the former president of SFX Financial Advisory Management Enterprises Inc., was found guilty by the Securities and Exchange Commission last March of misappropriating funds from the firm's clients, which included many professional athletes.

According to a report by the NBC television station in Washington, Mr. Ourand pleaded guilty Monday to a federal criminal charge and admitted taking $250,000 from former heavyweight champion Mike Tyson and $500,000 from former NBA star Glen Rice and at least two other pro athletes.

Prosecutors said Mr. Ourand was a financial manager for the athletes and took the players' checks, making them out to himself or to cash. They said he also made bogus wire transfers.

Attorneys said Mr. Ourand used the money for hotel stays, tanning services, dry cleaning, shopping and dental work. His sentencing date has not been scheduled.

In his civil case, which began in June 2015, Mr. Ourand was ordered to disgorge $671,367 plus prejudgment interest and pay a $300,000 civil penalty. He also was barred from the securities industry. Last March, SFX paid $150,000 and its chief compliance officer paid $25,000 to settle the case.