WASHINGTON: Denver Broncos quarterback Mark Sanchez, San Francisco Giants pitcher Jake Peavy and former Major League Baseball pitcher Roy Oswalt were defrauded of $30.4 million by their investment adviser, the Securities and Exchange Commission (SEC) said on Tuesday (Wednesday in Manila).
Ash Narayan ran a Ponzi-like scheme to swindle funds from the three US athletes, the agency said.
Although Narayan was not criminally charged, the SEC obtained a court order to freeze his assets as part of a lawsuit filed in Dallas.
Narayan told the three athletes he was using a low-risk investment strategy for their money but instead put their earnings into an online ticket business, the SEC said.
The agency’s lawsuit says Narayan appealed to each man’s Christian faith to gain his trust, then funneled their funds into Ticket Reserve Inc., a financially struggling company in which he owned more than three million shares of stock.