Seven current and former NFL players have sued the league and its union to recover US$20 million they lost in an alleged fraud scheme, claiming the union endorsed the services of an investment firm even though its manager had liens against him.
In a lawsuit, filed on Friday in US District Court, the players said the league and the NFL Players Association are liable for the losses because of investments with hedge fund manager Kirk Wright.
The suit says the union recommended Wright through registration in a union investment program even though Wright and his partner, Nelson "Keith" Bond, had active state and federal tax liens against them.
The players also say that the union failed to certify that Wright was properly insured as required by the program, and failed to notify the plaintiffs about those matters.
NFL spokesman Greg Aiello said on Tuesday the league regards the lawsuit as unfounded and without merit.
"We will review the matter with our attorneys and look forward to responding as directed," he said.
He added that only one of the players, Blaine Bishop, asked for a background check, and only for Bond, and that a database reviewed by the league's security department found no record of any liens or relevant information.
NFLPA spokesman Carl Francis said his group was looking into the matter.
"We don't have all the facts," he said. "Once we do, we will address it."
Wright was arrested in Miami Beach in May on federal fraud charges. He also faces a lawsuit filed by the Securities and Exchange Commission against him and his company, International Management Associates.
Among the clients deceived by Wright are former Denver Broncos players Steve Atwater, Ray Crockett, Al Smith and Bishop, as well as former Philadelphia Eagles player Clyde Simmons, authorities said.
The five players are plaintiffs in the lawsuit against the NFL and players' union, along with Marco Coleman, who has played with six teams including the Broncos, and Carlos Emmons, who currently plays for the New York Giants.
The players are asking in the suit for compensatory and punitive damages as well as an injunction to ensure that the NFL and its union have adequate practices in place for performing background checks and protecting players from fraud by registered financial advisers.
According to authorities, Wright and his company collected as much as US$185 million from at least 500 investors since 1997 and misled some of them to believe the value of those investments was increasing using false statements and documents. As recently as Jan. 25, the firm reported US$166.6 million in assets spread across five hedge funds it manages and advises. That money is now missing, according to the SEC.
The NFL toughened up its drug policy, adding amphetamines to the list of banned performance-enhancers starting next year.
Amphetamines were previously listed as a "substance-abuse drug," but are now in the same category as steroids and other enhancers which carry much stronger penalties. Next year will serve as a transition year, where a first positive test would bring a warning and put a player into the drug program.
But in 2007, amphetamines will be tested for on a regular basis. A first positive test will result in a four-game suspension, the same penalty now levied for positive steroids tests. Major League Baseball also started testing for amphetamines this season.
Harold Henderson, NFL executive vice president of labor relations, said the league and union worked together to toughen the penalties for amphetamines after the US Congressional hearings last year on drugs in sports.
"We never looked at it as a competitive issue for our players, like steroids and other things, but realized the possibility that some players would use it for a gameday edge," Henderson said on Tuesday"The union quickly agreed with us."
The penalty for a second positive test for performance-enhancing drugs was increased from six to eight games. A third positive test still carries a one-year suspension.
A sumo star was born in Japan on Sunday when 24-year-old Takerufuji became the first wrestler in 110 years to win a top-division tournament on his debut, triumphing at the 15-day Spring Grand Sumo Tournament in Osaka despite injuring his ankle on the penultimate day. Takerufuji, whose injury had left him in a wheelchair outside the ring, shoved out the higher-ranked Gonoyama at the Edion Arena Osaka to the delight of the crowd, giving him an unassailable record of 13 wins and two losses to claim the Emperor’s Cup. “I did it just through willpower. I didn’t really know what was going
The US’ Ilia Malinin on Saturday produced six scintillating quadruple jumps, including a quadruple Axel, in the men’s free skate to capture his first figure skating world title. The 19-year-old nicknamed the “Quad god,” who is the only skater to land a quadruple Axel in competition, dazzled with an array of breathtakingly executed jumps starting with his quad Axel and including a quadruple Lutz in combination with a triple flip and a quadruple toe loop in combination with a triple toe. He added an unexpected triple-triple combination at the end to earn a world-record 227.79 in the free program for a championship
Shohei Ohtani’s interpreter is being criminally investigated by the IRS, and the attorney for his alleged bookmaker said Thursday that the ex-Los Angeles Dodgers employee placed bets on international soccer — but not baseball. The IRS confirmed Thursday that interpreter Ippei Mizuhara and Mathew Bowyer, the alleged illegal bookmaker, are under criminal investigation through the agency’s Los Angeles Field Office. IRS Criminal Investigation spokesperson Scott Villiard said he could not provide additional details. Mizuhara, 39, was fired by the Dodgers on Wednesday following reports from the Los Angeles Times and ESPN about his alleged ties to an illegal bookmaker and debts well
HSIEH MAKES QUARTERS: Taiwan’s Hsieh Su-wei and Elise Mertens of Belgium won in the women’s doubles and face Bethanie Mattek-Sands and Sofia Kenin of the US Top-ranked Iga Swiatek and US Open champion Coco Gauff were knocked out of the women’s singles at the Miami Open on Monday, while Taiwan’s Hsieh Su-wei advanced in the women’s doubles. Swiatek lost to Ekaterina Alexandrova 6-4, 6-2, hours after third seed Gauff fell in three sets to No. 23 Caroline Garcia 6-3, 1-6, 6-2. Alexandrova beat a top-ranked player for the first time and advanced to face Jessica Pegula, a 7-6 (7/1), 6-3 winner over Emma Navarro, in the quarter-finals. Alexandrova recorded her second win over Swiatek, following a 2021 victory in Melbourne. Swiatek had won their three matches since. “We played quite