The Feds are reportedly investigating whether numerous NBA players were taken in by an $18 million dollar investment scam, according to Yahoo News.
The U.S. Department of Justice, the Federal Bureau of Investigation and the U.S. Securities and Exchange Commission are looking into questions of whether Jade Management convinced dozens of athletes to invest in fraudulent stocks.
Jade Management has previously managed investments for players and has reportedly been linked to a company called Success Trade, which has come under scrutiny by government regulators.
During an 18-month investigation, Yahoo! Sports identified multiple athletes that purchased promissory notes from Success Trade. Among them were Detroit Pistons guard Brandon Knight, Cleveland Browns cornerback Joe Haden, San Francisco 49ers tight end Vernon Davis, former Washington Redskins running back Clinton Portis and former Chicago Bears defensive end Adewale Ogunleye.
Among the athletes who may’ve been scammed are Detroit Pistons Guard Brandon Knight, Cleveland Browns cornerback Joe Haden, San Francisco 49ers tight end Vernon Davis, former Washington Redskins running back Clinton Portis and former Chicago Bears defensive end Adewale Ogunleye.
Jade Management founder Jinesh “Hodge” Brahmbhatt sent an email to clients informing them that he is unsure whether they will ever get their money back.
“We have told [Success Trade CEO Fuad Ahmed] that what is most important is getting you paid back,” Brahmbhatt said in his email to athletes. “We believe that this is what he is trying to do. It is not clear whether he will be able to accomplish this, given the FINRA action and a number of other hurdles.”
