The saying, “Money makes money,” perfectly sums up what the world of financial management is all about. Las Vegas financial advisors are known to take clients’ current assets and help maintain them, as well as actively work on creating more wealth. However, at times those managing large sums of money step outside their indicated role and act unlawfully in order to get personal gain.
This may be what occurred to Jaret Wright, a pro pitcher who once worked for the New York Yankees. Wright claims that his financial advisor took advantage of the authority he had over Wright’s portfolios in order to put his money in Ponzi schemes or other high-risk investments. According to Wright, this occurred even after the fact that his financial advisor assured Wright that he understood that income for an athlete is unpredictable and so the advisor would put Wright’s assets in more modest investments.
According to court documents, the financial advisor received commissions for placing Wright’s money in allegedly fraudulent ventures. Wright also asserts that he did not know that his money was being improperly handled for more than a decade, until his net worth was being calculated by an outside auditor.
Wright filed a commercial litigation suit against the financial advisor, as well as several investment companies, for breach of fiduciary duty, failure to warn and fraudulent misrepresentation, among other claims. He believes that he lost approximately $7.5 million as many of his investments were considered to be valueless.
In cases such as these, a business litigation lawyer is almost always essential in order to make a proper case against the defendants and try to work toward winning compensatory and punitive damages.
Source: Courthouse News Service, “Pro Pitcher Claims Adviser Cost Him $7.5M,” Joe Harris, Sep. 27, 2013