Athlete Overcharged $1.2M by Investment Advisor

Athlete Overcharged $1.2M by Investment Advisor

The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against an investment advisor in California federal court on accusations of deceiving a professional athlete client and his wife in relation to inflated management fees of more than $1 million.

The SEC claims that the advisor, Jeremy Drake, charged the unnamed athlete and his wife 1 percent in management fees but told the couple the fee was between 0.15 percent and 0.2 percent. The fee difference resulted in a payment to Drake of $1.2 million more than what he represented to his client.

In order to conceal the discrepancies, Drake falsified documents and created a fake persona to supply false evidence to corroborate his claims. When Drake was confronted by the athlete’s wife, he told her that reporting the issue to the brokerage firm would create bad publicity for the couple. The athlete’s wife refused and came forward resulting in the termination of Drake.

SEC Seeks Disgorgement of Funds

The SEC claims for violating the Investment Advisers Act and seeking disgorgement of all the funds Drake earned from his alleged misconduct. Of the $1.5 million Drake received, the SEC alleges that $900,000 came from incentive-based compensation related to the fees paid by his clients.

Are You a Victim of Broker Misconduct?

If you believe you have been the victim of broker misconduct or fraud, you may have certain legal rights that require your immediate attention.

Call an Investment Fraud Attorney Today

If you are looking for an investment fraud attorney to review your rights and options, the investment fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered more than $100 million from banks and brokerage firms for their wrongful actions.

With offices in Los AngelesNew YorkWest Palm Beach and Miami, our investment fraud attorneys represent clients nationwide and may be able to help you recover your investment losses.

Contact an investment fraud attorney at Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and options.

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Adviser to Spurs Star Gets Time for Investment Fraud

Adviser to Spurs Star Guilty of Investment Fraud

Former financial adviser to San Antonio Spurs star Tim Duncan has admitted to investment fraud. Venture capitalist and former financial adviser Charles A. Banks IV pleaded guilty in April to one count of wire fraud.

Basketball Star Loses Millions to Fraud

Banks accepted the charges of fraud for duping the athlete into investing in a sportswear company he controlled, defrauding the basketball star of millions. The adviser, sentenced by a Texas federal judge, will serve four years in prison and pay $7.5 million in restitution.

Federal prosecutors say that Banks manipulated Duncan into guaranteeing payment of a $6 million debt related to a merchandising business.

Banks could begin to serve his time as early as August. The U.S. Department of Justice said in a statement that after his release he will have to serve three years’ probation.

Have You Been a Victim of Investment Fraud?

If you are the victim of investment fraud or believe you have been scammed, you may have certain legal rights that require your immediate attention.

Call an Investment Fraud Attorney Today

If you are looking for an attorney to review your rights and options, the securities lawyers at Dimond Kaplan & Rothstein, P.A. may be able to help you recover your investment losses.

Contact an attorney at Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and options.

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