SEC says Pittsburgh financial adviser defrauded pro athletes

SEC says Pittsburgh financial adviser defrauded pro athletes
Louis Martin Blazer III took about $2.35 million from five clients to invest in movie projects in Ponzi-like fashion.
MAY 19, 2016
A financial adviser in Pittsburgh stole money from several professional athletes to invest in movie projects in which he had a stake, according to charges by the Securities and Exchange Commission. Louis Martin Blazer III took about $2.35 million from five clients without their authorization to help finance two films, “Mafia the Movie” and “Sibling,” the SEC said Friday. In one case, Mr. Blazer allegedly stole $500,000 from the account of an athlete who had refused to invest in the projects. After that client discovered the wrongdoing and threatened a lawsuit, Mr. Blazer took money from another athlete to make the repayment in “Ponzi-like fashion,” according to the statement. “We allege that Blazer grossly abused the trust placed in him by his clients and repeatedly took their money without authorization,” Andrew Calamari, director of the SEC's New York Regional Office, said in the statement. “And when our examiners put him on the spot, he resorted to false statements and false documents.” Mr. Blazer, age 45, resides in Clinton, Pa. He is the founder of Pittsburgh-based Blazer Capital Management, a "concierge" firm that targeted professional athletes and other high net worth individuals, according to the SEC's complaint filed Friday in federal court in Manhattan. He defrauded clients between 2010 and 2012, the document shows. Efforts to reach Mr. Blazer for immediate comment were unsuccessful. The adviser agreed to settle the agency's charges without admitting or denying the allegations, and the financial penalties will be decided at a later date, the agency said.

Latest News

Are you developing resilient clients?
Are you developing resilient clients?

Preparing your clients to withstand the ups and downs of change – both external and internal – could be the key to unlocking their loyalty, trust, and confidence.

Greg Cornick, former number two at Osaic, slides down the management pole
Greg Cornick, former number two at Osaic, slides down the management pole

After leaving LPL in 2020, it hasn’t gone Cornick’s way at Osaic.

MIT’s Andrew Lo sees AI ready to run your money in five years
MIT’s Andrew Lo sees AI ready to run your money in five years

The finance professor and quant investing veteran believes with the right guardrails, artificial intelligence could be trusted to meet the high bar of fiduciary advice.

Advisor moves: UBS advisors defect to Ameriprise, Merrill Lynch
Advisor moves: UBS advisors defect to Ameriprise, Merrill Lynch

UBS has also regained some ground as it recruited an experienced Merrill advisor in New York.

Former California advisor indicted for alleged $9.5M Ponzi scheme
Former California advisor indicted for alleged $9.5M Ponzi scheme

The ex-Bay Area broker reportedly continued to peddle fake bond investments, promising rates of returns exceeding 20%, even after FINRA suspended his license in 2014.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

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.