We reported earlier this year about Jeff Rubin, a financial advisor that was banned for life by the SEC for securities fraud. Now, 16 current and former NFL players are suing BB&T bank for defaulting on their fiduciary duty by allowing Rubin to open accounts in their names and place millions of dollars into risky, unauthorized investments.
The players, including Ray Lewis, Fred Taylor, Brandon Meriweather, Frank Gore, and Santonio Holmes, are being represented by attorney Andrew Kagan, who said the bank ignored obvious red flags.
“It’s unbelievable that this could happen, and happen to so many people,” Kagan said. “Unfortunately, BB&T [formerly BankAtlantic], ignored plenty of red flags and allowed tens of millions of dollars to be transferred from clients’ accounts without their knowledge or permission. The sad thing is that by allowing this to happen, the bank has caused irreparable harm to the clients and ruined lives in the process. The money that was supposed to have supported these guys for the rest of their lives has been taken from them and many have been left with nothing. This is truly a tragic story.”
Former running back Fred Taylor says some of the responsibility for Rubin’s fraud should fall on the NFLPA.
“I think a certain amount of responsibility should fall on the NFLPA’s shoulders for allowing a financial adviser to say, ‘Hey, I’m registered with the players’ union.’ Of course players put some stock in the [players association] registering financial advisers and it certainly creates a false sense of security. If they’re going to allow financial advisers to sport the registration through the [players association], they should do something on an on-going basis to [vet them]. They should go and see the pattern of investments advisers are putting players into so they can see what kind of risk level they’re exposing the players to. If they’re going to let these guys tout their registration with the [players association], the union should engage in some kind of risk analysis. Otherwise, eventually, they might find themselves involved in lawsuits.”
Some the lawsuit’s allegations against the NC bank include:
1. Allowing Rubin to open unauthorized accounts using forged signatures.
2. Allowing suspicious withdrawals from players’ accounts without permission.
3. Sending account statements to Rubin’s investment firm and not directly to the players themselves.
4. Unauthorized loans and transactions made into failed Alabama casino project.
5. Power of Attorney accounts being opened without players’ permission.
Another key in this fraud is the link between many of the players and agent Drew Rosenhaus, who reportedly was friends with Rubin. The NFLPA is investigating their relationship.
|Alleged losses in players’ lawsuit against BB&T|
|Frank Gore – $8,745,000|
|Jevon Kearse – $7,958,000|
|Jamaal Anderson – $5,813,000|
|Lito Sheppard – $5,011,000|
|Santana Moss – $4,852,000|
|Ray Lewis – $3,778,000|
|Brandon Meriweather – $3,545,000|
|Jacob Bell – $3,339,000|
|Clinton Portis – $3,136,000|
|Gerard Warren – $3,000,000|
|Fred Taylor – $2,993,000|
|Derrick Gaffney – $2,295,000|
|Greg Jones – $2,006,000|
|Kenard Lang – $1,648,000|
|Santonio Holmes – $1,159,000|
|Tavares Gooden – $515,000|