June 22, 2016

Jake Peavy: Giants' Starting Pitcher Allegedly Defrauded of $Millions by Former Investment Advisor

San Franciso Giants' starting pitcher Jake Peavy has been smacked.  Big time.  And not from a batted ball.

According to an investigation and lawsuit filed by the Securities and Exchange Commission, Peavy and other professional athletes were defrauded by their former Investment Advisor Ash Narayan in a ponzi-like investment scheme.

Jake Peavy
San Francisco Giants' Starting Pitcher
Narayan, formerly a registered investment advisor and managing director of Irvine, California based RGT Wealth Advisors, allegedly (without clients' approval or knowledge) re-directed millions of client dollars into a highly speculative and financially unstable business venture The Ticket Reserve Inc.  Narayan allegedly also forged clients' signatures on documents, and falsely claimed to be a Certified Public Accountant.

Peavy:  Losses Exceeding $16 Million

The SEC investigation found that Peavy had indicated a conservative investment approach with his assets.  Peavy is believed to have lost more than $16 million in Ash Narayan's scheme.  Narayan was terminated by RGT Wealth Advisors in March.  At that time, RGT stated that numerous RGT clients who received investment advice from Mr. Narayan made "…certain investments on the recommendation of Mr. Narayan” which lead to his termination.

I am not involved with this matter, but have served as an Expert Witness in similar arbitration and litigation matters involving allegations of fraud, breach of fiduciary duties, and unsuitable investments.  These issues cast a pall over the entire investment advisory and financial planning world given the immediate thoughts that comes to mind:

Who can you trust?
You should be able to trust investment advisors and financial planners.  But should you?
Unfortunately, there are rotten apples in every barrel, and in every profession.

Oh, and as a huge baseball fan ... GO GIANTS!

4 comments:

  1. What can you do to spot that your financial advisor is stealing from you?

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  2. Regretfully, doing so can be difficult. Financial Advisors of all types, who want to steal from clients, will take any measures necessary to do so, including false account statements.

    Immediate safeguards that come to mind are: (1) Do not give your financial advisor discretionary authority over your account. (2) If you invest with a hedge fund, maintain close watch over your holdings and statements. Same holds true if you use your investment advisor's in-house brokerage company. Demand on-line access to accounts, and check them periodically. (3) Check out your financial advisor's qualifications with the appropriate licensing and certification boards. See if the licenses and certifications are true, and if there is a history of complaints. (4) Get a 2nd opinion from another professional if you have financial planning and investment concerns.

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  3. Is Peavy personally suing his former Investment Advisor Narayan?

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    Replies
    1. I do no know, although it is possible personal (or class) lawsuits, or individual arbitration suits, by Peavey and others are on hold until the SEC litigation is resolved. If so, I would expect to see Narayan, the firm RGT Wealth Advisors that employed him, and possibly others named as defendants.

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Thanks for sharing your comments here! Mary Rae Fouts