Two professional athletes have scooped a total of $819,300 from Morgan Stanley Smith Barney after the Financial Industry Regulatory Authority ruled that one of its brokers had recommended worthless investments.
NBA player Keyon Dooling and NFL player John St Clair were given advice to invest in start-up sports apparel company Global Village Concerns, according to a report at Financial Advisor Mag. It was also recommended to Dooling that he invest in Miami Beach nightclub, Club Play. However, the verdict from the Finra arbitration panel was that both of these investments were worthless.
It was judged that Morgan Stanley was negligent in its supervision of the broker, Aaron Parthemer. He has already been barred from the securities industry by the regulator based on an earlier action.
Dooling played in the NBA for 12 seasons and was a first round choice back in 2000. Meanwhile, St Clair enjoyed 11 seasons in the NFL playing for teams including the Cleveland Browns, Miami Dolphins, Chicago Bears and the St Louis Rams.
Speaking in the publication, attorney Chase Carlson commented that professional athletes are often victims of financial mismanagement and that this is “one of the few instances where an athlete has been able to recover his money.”