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.
SEP 30, 2009
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.

Latest News

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave