SEC Requests Seizure of Super Bowl Ring

On June 10, 2016, the U.S. Securities and Exchange Commission asked a California court for permission to seize former NFL player Willie Gault’s Super Bowl ring. Gault, who helped the Chicago Bears win Super Bowl XX in 1986, agreed to pay $206,571 in April of 2015 for his role in inflating the stock of heart-monitoring device maker Heart Tronics, Inc., where he served as co-chief executive officer.

The SEC is asking for Gault’s ring to help satisfy the settlement, which consists of a $78,000 civil …

June 7, 2016 Fraud / Litigation / Soccer

Soccer Superstar Lionel Messi Goes on Trial for Alleged Tax Fraud in Spain

In what has become a scandalous recent trend in the world of sports, Lionel Messi has become the latest high-profile soccer superstar to deal with Spain’s tough tax system and its legal enforcement. Messi’s tax trial began earlier this week in Barcelona, but the soccer legend finally had his day in court on Thursday, June 2, 2016.

On the stand Messi reiterated the theme his attorneys have been illustrating over the course of the week — that he had zero knowledge of the financial transactions …

January 10, 2016 Celebrities / Fraud / Litigation

“The O.C.” Star Sues Mother for Fraud

Mischa Barton — former star of the hit TV show “The O.C.” — filed suit against her mother, Nuala Barton, in April, alleging fraud and breach of fiduciary duties, among other causes of action. On January 3, 2016, a California judge determined that Mischa Barton’s suit did not adequately allege fraud, but told the actress that she may amend her complaint.

Barton’s complaint writes that the “action arises from the tragic tale of a greedy stage mother posing as a talent manager who, instead of …

October 15, 2015 Fraud

Yankees Minor Leaguer Sues “Agent”

On Friday, October 9, 2015, a minor league player in the New York Yankees farm system filed a lawsuit alleging that a man posing as a sports agent cheated him out of $100,000.

The player, Angelo Gumbs, was drafted by the New York Yankees in 2010, and currently plays second base for the Tampa Yankees in Florida. According to the complaint, Richard Earl Davis, Jr. represented that he was a baseball agent certified by the Major League Baseball Players’ Association (MLBPA). Gumbs then signed a …

July 22, 2015 Fraud

Texas Supreme Court Agrees to Hear Golf Channel Ponzi Scheme Question

In 2012, R. Allen Stanford, a former financier and professional sports sponsor, was convicted of various fraud, money laundering, and conspiracy charges based on his role as the head of massive Ponzi scheme. His more than $7 billion certificate of deposit fraud landed him in prison for 110 years. Since that time, a court-appointed receiver has been attempting to recover the money from various sources.

While the fraud was ongoing, it got so large that Stanford used mass marketing to get the word out about …

April 3, 2015 Fraud / NCAA

UNC & NCAA Seek Dismissal of Academic Fraud Claims

On Monday, March 30, both the University of North Carolina and the NCAA filed motions to dismiss the lawsuit they’re facing brought by two former student-athletes for failing to provide them a meaningful education.

The lawsuit, filed in January, stems from the highly publicized academic fraud scandal where it was shown that the University of North Carolina had been offering “paper classes” to boost grades. These classes required very little work, lacked academic integrity, and provided failing student athletes the grade boost necessary to …

March 23, 2015 Fraud / Litigation

Ex-Ravens Ray Lewis Going After His Former Lawyer

Ex-Ravens linebacker Ray Lewis has sued his former attorney and longtime friend who defrauded him of $1.7 million in connection with a failed development project in Hunt Valley, Maryland.

The lawsuit alleges Lewis’ former attorney Marc Seldin Rosen convinced Lewis to sign a line of credit that “would not be touched.” However, the attorney obtained $1.7 million for the MVP Lanes entertainment complex, a Hunt Valley bowling alley project. Lewis alleges that he believed he was only allowing his name and likeness to the project.…

February 18, 2015 Fraud

Lance Armstrong Owes $10 million According to Arbitrators

Last week, Lance Armstrong lost an arbitration battle in the amount of $10 million over a fraud dispute with a Dallas based promotions company.

Armstrong and former team owner Tailwind Sports Corp. were on the losing end of a 2-1 arbitration decision that ruled in favor of promotions company SCA Promotions. SCA Promotions had previously paid Armstrong bonuses for victories in the Tour de France, but then took legal action to recover them once doping allegations arose. The parties originally agreed in 2005 to a …

December 22, 2014 Fraud / TV

Reality TV Star “Bridezilla” Charged with Workers’ Compensation Fraud

Anita Maxwell, a guest on Season 4 of the reality television show “Bridezillas” in 2007, was recently arraigned in California on multiple felony charges stemming from allegations of workers’ compensation fraud resulting in improper receipt of over $40,000 in benefits.

Maxwell, who also was left at the altar during her appearance on the popular show, was employed by the Cedars-Sinai Health System and came under investigation in 2012 after a claim for a neck, back, and shoulder injury. Reportedly, Maxwell denied pre-existing conditions although she …

October 24, 2014 Fraud / NCAA

UNC Academic Fraud Report Released: 18 years of easy A’s

On Wednesday, October 22, the report documenting an eight month in-depth investigation of alleged academic fraud at the University of North Carolina was released implicating over 3,000 students during 18 years of NCAA competition.

The report, authored by former federal prosecutor, Kenneth Wainstein, exposes a practice engaged in by counselors and teachers to protect student-athletes from academic requirements affecting their eligibility in competition. Student-athletes were ushered into certain “paper classes” that required little to no work, attendance, or participation for a good grade.

The scandal …