Mike Tyson Seeks to Punch-Out Former Financial Advisors with Lawsuit
On February 20, 2013, former heavyweight boxing champ Mike Tyson filed a multi-million dollar lawsuit against Live Nation Entertainment Inc. and its subsidiary SFX Financial Advisory Management Enterprises Inc. in California state court. Tyson’s suit accuses the Defendants of damaging him financially by embezzling more than $300,000.00 from Tyson and his wife, along with providing Tyson false financial advice that ended up costing the former star more than $5 million.
Tyson has had a financial relationship with the Defendants since 2005. Later, when the boxer began experiencing financial woes, the Defendants were put in charge of managing Tyson’s bankruptcy trust. However, instead of making required payments to the IRS – payments which could have helped close the bankruptcy proceeding against him – Tyson noticed that Defendants were not only embezzling some of the money, but were also make misrepresentations to cover up their scheme. Initially, Defendants tried to get Tyson to settle the suit by signing a release, but he refused. Then, after Defendants’ would not return Tyson’s investment files, Tyson filed his suit.
Tyson’s causes of action allege negligent hiring, civil theft, breach of fiduciary duty, fraud, and unjust enrichment. Along with seeking compensatory and punitive damages, Tyson is also seeking a full accounting of all the embezzled funds, along with his attorneys’ fees and costs.