Jason Terry claims in court that his financial advisers cost him $2.4 million, in part with Ponzi schemes
Two years ago, I was living in an apartment with some friends who decided to get a dog. I was totally behind the decision at the time, but the dog had an unfortunate tendency to eat anything and everything including my leather wallet with $40 inside. As you might imagine, I was livid. $40 was, well, $40, and it made up an unfortunately large percentage of my net worth.
Jason Terry’s net worth is considerably higher than mine will EVER be, but if his allegations against his former financial advisers are true, he lost a heck of a lot more than $40 through the advisers’ involvement in Ponzi schemes. Via Courthouse News Services:
Boston Celtics guard Jason Terry claims in court that his financial advisers cost him $2.4 million by putting his money into risky investments, some of which were Ponzi schemes.
Terry sued Suntrust Banks, Martin Kelly Capital Management, William C. Crafton Jr., Adam Fein, and CSI Capital Management, in Federal Court. [...]
[From the complaint] “Crafton specifically told plaintiff that plaintiff could, at any time, get out of the investments Crafton placed plaintiff in because he said very investment he placed plaintiff in was a very safe, liquid asset.
“However, contrary to his express representations, defendant Crafton placed plaintiff in high-risk, alternative investments, which were Ponzi schemes or other fraudulent investments run, managed, controlled, operated and/or created by individuals with whom Crafton had a personal relationship, business dealings or kickback agreements. These investments were unsuitable and illiquid and Crafton had some financial interest and undisclosed relationship with each investment that was never disclosed to plaintiff.”
According to the story, Terry hired Crafton when he was still in Dallas, impressed with Crafton’s roster of professional athletes. Terry wanted to invest his money conservatively, and Crafton promised to do just that. But, according to the allegations, Crafton didn’t hold up his end of the deal, and now Terry is filing suit for, well, you saw the number.
It should be noted that this isn’t the first time Crafton has been accused of investing an athlete’s money in Ponzi schemes. The Courthouse News Service reported back in August that three Philadelphia Eagles and a professional women’s soccer player all claimed to have lost a considerable amount of money to Crafton, and Terry’s allegations are strikingly similar to theirs. Terry has been with Crafton since before the Eagles’ players lawsuit, but it wouldn’t be a surprise if their case brought his attention to his own.
I’m far, FAR from a legal/financial expert (I mean, I work in the Wal-Mart deli when I’m not in class or writing here at Celtics Town), but Terry is a very intelligent individual, and he has a financial background, representing the Mavericks as a player rep in the latest NBA lockout. It would be foolish to speculate on a court case, but it DOES seem unlikely that a smart guy like Terry would file suit frivolously.
Follow Tom on Twitter: @Tom_NBA. But don’t ask him for financial advice.