Hockey star says money manager bilked him of $43M
Former Detroit Red Wings hockey star Sergei Federov has filed a lawsuit charging a Michigan man and his businesses with swindling him out of $43 million.
Former Detroit Red Wings hockey star Sergei Federov has filed a lawsuit charging a Michigan man and his businesses with swindling him out of $43 million.
The lawsuit, filed in the circuit court for the County of Wayne (Michigan), alleged that financial adviser Joseph Zada and his entities, Zada Enterprises LLC and Xandarius LLC, both of Grosse Pointe Shores, Mich., Xandrius LLC of Wellington, Fla., and Equest Properties LLC of Palm Beach Gardens, Fla., defrauded Mr. Federov of the money over 11 years
The complaint alleges that a fiduciary relationship existed between Mr. Federov and Mr. Zada, and that hockey star relied on the latter to manage, direct and invest his assets.
The suit further stated that Mr. Zada didn’t use the assets for the purposes that he represented and that he “unjustly retained the assets and any interest and returns earned and has misused, dissipated and squandered these assets.”
Further, whenever Mr. Federov asked about the assets, “Mr. Zada, acting in concert with others, intentionally lied to Mr. Federov and provided him with false information and engaged in other fraud and deceptions,” the complaint read.
Mr. Federov also alleged in the suit that Mr. Zada had promised to give him $60 million as repayment for the investment and failed to do so.
Mr. Federov seeks $60 million plus attorneys’ fees, costs, interest and damages.
Mr. Zada couldn’t be reached for comment.
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