Texas adviser used ex-NFL players to promote scheme, SEC charges

An Austin, Texas-based investment adviser has been charged with defrauding investors in a scheme that used former National Football League players to promote offerings in an insurance company. The Securities and Exchange Commission on Tuesday claimed that Kurt Barton and his company, Triton Financial LLC, raised more than $8.4 million from about 90 investors by selling units in an affiliate, Triton Insurance. According to the SEC, Triton told investors that their funds would be used to purchase an insurance company. Instead, the proceeds were used to pay day-to-day expenses at Triton and its affiliate, the SEC charged in a complaint filed in federal court in Austin. The SEC complaint indicated that Triton used ex-NFL players to promote its investment offerings. The regulator did not name the players in the complaint, nor did it charge any players with wrongdoing. Triton was the subject of a Sports Illustrated article in March that prompted the Texas State Securities Board to examine the firm's business. The story in SI stated that Triton used former NFL quarterbacks Chris Weinke, Ty and Koy Detmer, and Jeff Blake to promote Triton Insurance. Sports Illustrated reported that Mr. Blake, who played for the New York Jets and a number of NFL teams during his career, sent an e-mail to 102 retired NFL Players — including Hall of Fame running back Eric Dickerson — touting Triton and its investment returns. “By associating with former football stars, they were able to build a facade of legitimacy and gain investor trust,” Rose Romero, director of the SEC's Fort Worth regional office, said. The Commission charged Mr. Barton with securities fraud and seeks permanent injunctions, disgorgement of illegal gains and financial penalties. Mr. Barton, who did not admit or deny the SEC's allegations, consented to permanent injunctions against future securities fraud violations. Joe Turner, an attorney representing the Austin-based adviser, said Mr. Barton voluntarily consented to the appointment of a receiver. “He intends to work closely with the receiver in an effort to ensure that the investors, many of whom are friends and relatives, do not lose their money,” Mr. Turner said in an e-mail.