NFL stars who’ve flagged their advisers
This former Denver Bronco defensive back, an eight-time Pro Bowl selection, got burned by a scam artist after he retired from the game. Mr. Atwater was hired by Kirk Wright to solicit investors for International Management Associates, an investment firm that ran several hedge funds. Mr. Atwater also reportedly invested $2.7 million of his own money with Mr. Wright and IMA.
By 2006, IMA had taken in more than $150 million in investments, and Mr. Wright sent clients account statements showing huge investment gains. In reality, the hedge fund manager lost almost all the money that investors had given him. In May 2008, Mr. Wright was convicted of money laundering and fraud — but killed himself while awaiting sentencing. Mr. Atwater was not charged.
In an open case originally filed in 2006, five players, including Mr. Atwater, filed suit against the NFL Players Association, alleging that the union was negligent in vetting financial reps. The league, which runs background checks on advisers, is also named in that lawsuit. The case was dismissed late last year, but the players have appealed the decision.