Denver Broncos quarterback Mark Sanchez, San Francisco Giants pitcher Jake Peavy and former MLB pitcher Roy Oswalt were cheated out of millions of dollars in what is being described as a “Ponzi-like scheme.”
“Sanchez, and major league baseball pitchers 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,” per Matt Robinson of Bloomberg News. “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.”
The lawsuit alleges that Narayan got through to the athletes by “appealing to their Christian faith.”
Per the SEC, Narayan “fraudulently funneled their savings into a money-losing business and his own pocket” and forged documents to make it all happen.
Representatives of Sanchez, Peavy and Oswalt didn’t respond to requests for comments. Narayan’s attorney Howard Privette however, did.
“Mr. Narayan has always sought to act in his clients’ best interests,” Robinson quoted Privette saying. “Accordingly, he will continue to work with the SEC to ensure that this matter is resolved in the most favorable manner for those clients.”
This is sadly a relatively common story with professional athletes. Given how much money they make, athletes are a common target for schemes like the ones Narayan is alleged to have committed. This is certainly a matter that we’ll hear more about in the coming weeks and months.