Ex-Jet Mark Sanchez and two other pro athletes victims of investment fraud: SEC

Ex-Jet Mark Sanchez and two other pro athletes victims of investment fraud: SEC
Mr. Sanchez, Jake Peavy and Roy Oswalt invested $30 million in a 'Ponzi-like' scheme allegedly run by an investment adviser who appealed to their Christian faith, the regulator says.
AUG 09, 2016
Former New York Jets quarterback Mark Sanchez and other professional athletes were cheated out of millions of dollars in a Ponzi-like scheme orchestrated by an investment adviser who appealed to their Christian faith. Mr. Sanchez, Jake Peavy and Roy Oswalt, were defrauded out of about $30 million, according to a recently unsealed U.S. Securities and Exchange Commission lawsuit in Dallas federal court. The athletes all used the same broker, Ash Narayan, formerly of RGT Capital Management. The adviser gained their trust through religion and their interest in charitable works, the SEC said. Mr. Narayan concealed multiple conflicts of interest from investors, the SEC said in its lawsuit against him. He directed the athletes' cash to The Ticket Reserve Inc., which allows fans to reserve face-value tickets to sporting events where the teams have yet to be determined, the SEC said. He was on the company's board of directors, owned more than 3 million shares and was its primary fundraiser — raising more than 90% of the company's investment capital, the agency said. Nick Sanchez, Mark's brother and attorney, didn't have an immediate comment. He's currently with the Denver Broncos. All three athletes sought low-risk, conservative investment strategies, the SEC said. Mr. Narayan ignored their requests and instead invested in TTR even as the company's financial conditions were in distress. TTR's chief executive officer wrote to Mr. Narayan in a May 2014 email that “To be sure our revenue sucks. Our balance sheet is a disaster.” The case is Securities and Exchange Commission v. Ash Narayan, 16-cv-1417, U.S. District Court, Norther District of Texas (Dallas).

Latest News

Merrill lands four advisor teams as May recruiting data shows firm's two-way churn
Merrill lands four advisor teams as May recruiting data shows firm's two-way churn

Merrill's latest hires span Colorado to Louisiana, even as industry-wide recruiting data suggests the firm is losing almost as many advisors as it gains.

Fund manager sues Kandeo, alleges $100 million FinSocial loss
Fund manager sues Kandeo, alleges $100 million FinSocial loss

The $36 million buy allegedly hid inflated books and a $50 million diversion.

Advisor gets $200,000 from Ameriprise in 'emotional distress' lawsuit
Advisor gets $200,000 from Ameriprise in 'emotional distress' lawsuit

“An award citing emotional distress is very unusual,” an industry executive said.

Workplace financial education linked to stronger financial habits, but participation remains low
Workplace financial education linked to stronger financial habits, but participation remains low

New EBRI research found workers who participated in employer financial education reported higher confidence, literacy and financial satisfaction.

The rise of the super advisor: How AI is redefining competitive advantage in wealth management
The rise of the super advisor: How AI is redefining competitive advantage in wealth management

Beyond operational excellence, the winning advisors of the future are the ones who can reach across multiple disciplines without discarding specialist skills.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income