by Brian Mahany
We have seen this headline far too many times, former star athlete or musician accuses agent or stockbroker of fraud. Although fraud occurs daily in our life, it makes headlines when a celebrity is the victim. Unfortunately, because of their celebrity status, many athletes, actors and musicians find themselves the target of shady managers and financial advisers. Former heavyweight champion boxer Mike Tyson is the latest victim.
According to an article in InvestmentNews, Tyson claims his former advisers, Live Nation Entertainment and a subsidiary SFX Financial Advisory Management Inc, committed fraud and breach of fiduciary duty. Tyson says his advisors stole approximately $300,000 and caused millions in lost opportunities.
A search of SEC and District of Columbia records shows that SFX is a small boutique investment advisory firm representing just a handful of individuals, all high net worth clients.
Tyson’s lawyer claims that his former advisor, Brian Ourand, admitted the theft and subsequently SFX attempted to get him to quietly settle. Tyson claims that although Ourand stole $300,000, his bad financial advice and the lost opportunities caused by the theft have made his actual damages $5 million.
Tyson is not the only high profile athlete we have seen that is the victim of celebrity fraud. Busy athletes and performers with limited business background are frequently the target of all types of fraud. It is especially disturbing, however, when the person accused of the fraud is an agent, lawyer, accountant or investment adviser charged with protecting their client from just that sort of abuse. Already in our practice we have seen several very high profile clients and celebrities ripped off by their agents and financial advisers.
The cases are sometimes difficult to pursue because a few celebrities have a reputation for excess and reckless spending. For example, the comments on TMZ and several other websites were equally condemning of both Tyson and his former financial adviser.
If you have been the victim of a dishonest investment adviser, financial planner, agent or stockbroker, gives us a call. Our fraud recovery lawyers concentrate in just two areas, fraud and tax. Frequently, our cases come to us from other lawyers or financial advisers who need help in getting money back for their clients. We are adept at both recovering money for our clients and protecting their privacy and reputation.
Mahany & Ertl – America’s Fraud Lawyers. Offices in Milwaukee, Wisconsin; Detroit, Michigan; Portland, Maine; Minneapolis, Minnesota and San Francisco, California. Fraud recovery available in many jurisdictions.
UPDATE: Visit our Celebrity Fraud information page for more information.
UPDATE: The broker in the Tyson case, Brian Ourand, was convicted and sentenced in September 2017.