Friday, February 4, 2011

Lawsuit Sheds Light on Agent's Relationships with College Kids

Just received a press release from a law firm in Tampa suing national securities firm Oppenheimer & co. The suit alleges that investors were defrauded out of money intended for college football players after they declared themselves eligible for the NFL draft:
The complex scenario generally worked as follows. Investor monies were raised for the purpose of creating and funding an investment used to fund the temporary needs of young NFL recruits during the period of time immediately following their departure from college football and prior to their entry into the NFL draft. This is a period of time wherein sports agents aggressively recruit top NFL future talent to support their extremely lucrative businesses. Having monies available to lend to these recruits is a very powerful recruiting tool for sports agents. Monies were thus raised by Oppenheimer’s New York City office through (a financial advisor in New York) to fund the loans to these young recruits which were guaranteed by the players, the sports agencies, and others.
The suit claims, however, that the monies were funnelled elsewhere, defrauding investors.

The athletes indirectly involved in the suit include Steelers' WR Emmanuel Sanders (just ays before the Super Bowl), Broncos CB Perrish Cox, Cardinals LB Daryl Washington, Jets CB Brian Jackson, and Raiders DE Lamarr Houston.

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