Due to a lack of proper investing and financial understanding, some sports celebrities are vulnerable to investment sharks who act as investment managers but have the ulterior purpose of defrauding their clients.
Sports stars make millions of dollars from their careers, and they frequently have interests in other areas where they can invest money to increase their wealth; this makes them very appealing to investment managers. Unfortunately, many sports stars have lost money to some of the slick-mouthed investment managers who later turn out to be fraudsters.
From boxing stars to football, basketball, and other sports icons, the following are victims of fraud.
Usain Bolt
Usain Bolt, the famed Jamaican sprinter and eight-time Olympic gold winner, is one of the best athletes of all time. In his home country of Jamaica, Bolt lost $12.7 million due to investment scam. According to Gulf News, the 36-year-old running and field legend was alerted in January 2023 that his account balance at Kingston-based Stock and Securities (SSL) had inexplicably dropped to $12,000 from its previous value of millions.
Stephen Curry
In 2022, the Golden State Warriors basketball player earned $45.8 million (from salary and victories) and $47 million (from endorsements), for a total of $92.8 million, making him one of the highest-paid sportsmen. Curry, unfortunately, was one of the victims who lost billions in the 2022 FTX Investment fraud. The defendant in the civil action filed in the Southern District of New York was Bankman-Fried, the Founder and CEO of FTX, who was accused of raising more than $1.8 billion from investors and diverting billions of dollars to expand his corporate empire.
Mike Tyson
In the late 1980s, the former World Heavyweight Champion commanded the boxing ring and earned millions of dollars. Tyson sued Don King, a boxing promoter, for $100 million, accusing him of cheating him (Tyson) of millions of dollars since 1988. The two sides reached an agreement in which Tyson agreed to drop the claim and King agreed to pay $14 million.
Dennis Rodman
The prominent NBA Champion known as The Worm for his rebounding abilities played for a variety of teams, including the Detroit Pistons, San Antonio Spurs, Chicago Bulls, Los Angeles Lakers, and others. Rodman, like several other sports figures, fell prey to the Peggy Ann Fulford Scam. Fulford was accused of stealing at least $3.5 million, and she pleaded guilty and was sentenced to $1,243,579 in restitution to Rodman.
Kareem Abdul-Jabbar
Abdul-Jabbar is just another NBA star who has lost money due to investment fraud. The 7-foot-2-inch great won six NBA championships while playing for the Milwaukee Bucks and the Los Angeles Lakers. According to Sports Illustrated, Abdul-Jabbar lost his multi-million dollar Bel Air residence in a fire and further fortunes in a series of poor ventures. He eventually sued his business manager, Tom Collins, for $59 million.
Tim Duncan
Tim Duncan, largely regarded as the greatest power forward in NBA history, is another NBA legend on our list. The five-time NBA champion played for the San Antonio Spurs during his entire 19-year professional career. Duncan was duped by a guy named Charles Banks, who worked as his financial adviser. Duncan told the Bleacher Report that his mistaken trust in his financial advisor cost him more than $20 million. According to Bloomberg’s Scott Soshnick, the NBA player made approximately $220 million during his career.
“Luckily, I had long career and made good money. This loss is a big chunk, but it’s not going to change my life in anyway. It’s not going to make any decision for me,” Duncan said after losing some of his money to fraud. In 2017, a federal judge ordered Charles to pay $7.5 million to Duncan.