Securities Broker Banned For Life After Defrauding Over 30 NFL Players Out Of $40 Million
Statistics show that after just two years of retirement 78% of NFL players are “financially stressed”…in other words broke. This is a fact that is sadly disturbing, and often occurs due to poor spending habits and lack of long-term planning, but another major component to this financial instability is getting and making poor investment choices.
Last week, Florida financial advisor Jeffrey Rubin was banned from the securities industry for life after putting a group of current and former NFL players in an extremely risky investment that ultimately resulted in over $40million in losses. The group of players cheated out of millions included: Santana Moss, Plaxico Burress, Samari Rolle, Greg Olsen, Devin Thomas, Terrell Owens, Santonio Holmes, Fred Taylor, Jevon Kearse, Kyle Orton, and Clinton Portis many of whom by coincidence or not were represented by NFL Agent Drew Rosenhaus.
Rubin, who operated Pro Sports Financial a “concierge service” that offered everything from investment advice to bill payment services, steered the players to invest in an Alabama entertainment and casino project as he in return received more that $500,000 in kick backs for those he conned into putting money into the doomed venture. Players were flown in on private jets and sold on an entertainment complex, which despite the over $40 million in capital invested, never lived up to it’s lofty expectations and was raided by Alabama state authorities after is was found that it housed illegal gambling devices.
Rubin, who coincidentally got his claim to fame by saving players from the same fraudulent actions he in return did to them, has lived a scandal filled life complete with a drug arrest, a fiance’ who died from an overdose, and questions about unethical real estate transactions. He now, even after agreeing to being barred from the industry for life in a settlement with financial regulatory agency FINRA, still lives in his $2.8 million dollar home in lavish Lighthouse Point, FL.
Jeffrey Rubin is the classic case of what happens more than we know in the sports entertainment industry. A lot of these financial advisors know that these young athletes, who have little to no financial literacy, have been thrust into a situation that makes them venerable to fraud and corruption and they capitalize on it. Unfortunately, people like Jeffery Rubin will never get the type of punishment they deserve…extended jail time. Instead, they will get a banned (a slap on the wrist) and find another industry that will allow them to cheat their way to the top. I don’t know if the disturbing 78% statistic will ever change, but in order for it to change, players have to take more care in their own financial education.