Nearly a year after suing his former financial adviser for allegedly misappropriating $15M from him, Dallas Cowboys running back Darren McFadden is now suing Ameriprise Financial (AMP) over his investment losses. In his Texas securities fraud case, McFadden claims that the firm was negligent in supervising Michael Vick. The broker is not the same person as former NFL football player Michael Vick nor is he related to him.
Ameriprise started investigating Vick in 2010 because of suspect and unauthorized trades identified in McFadden’s account. However, contends the NFL player, he was never told of the probe or their concerns or that Vick was suspended months later.
McFadden claims that Ameriprise had multiple opportunities to stop the misappropriation of his funds yet took no such action. McFadden later followed Vick to another firm where the ex-financial adviser allegedly misappropriated even more money from him.
Vick denies wrongdoing. He is scheduled to go on trial next year.
Ex-Adviser That Bilked Former NBA Star Tim Duncan Gets Prison Sentence
In other Texas securities fraud news also involving the bilking of a professional athlete, former financial adviser Charles Banks is now sentenced to four years in prison. Banks pleaded guilty to wire fraud related to an investment he encouraged ex-NBA player Tim Duncan to make. He also must pay Duncan $7.5M in restitution.
Court documents in the Texas securities fraud indicate that Duncan lost his money in loan guarantees and investments he made that involved the company Gameday Entertainment. Most of the money went to Banks instead.
Banks recommended that the ex-NBA player lend Gameday $7.5M. The former money manager is also accused of forging Duncan’s signature to obtain a $6M bank loan for the company. He also advised the ex-San Antonio Spur’s star to invest in other investments and ventures that he controlled or to which he had ties.
In 2016, the US Securities and Exchange Commission filed civil charges against Banks related to his alleged defrauding of Duncan.
Throughout the state, our Texas securities fraud law firm represents investors in seeking to recover their losses. Contact Shepherd Smith Edwards and Kantas, LTD LLP today. One of our Houston securities attorneys would be happy to offer you a free, no obligation case consultation.
NFL Player Sues Ameriprise Over Broker He Claims Stole $15M, StarTribune, May 15, 2017
Tim Duncan gives statement in sentencing of ex-financial adviser, KSAT.Com, June 27, 2017
Darren McFadden claims ex-financial planner mishandled $15M, ESPN, June 9, 2016