Thursday, June 9, 2016

Darren McFadden sues financial advisers, alleges $15 million in losses

Posted By on Thu, Jun 9, 2016 at 11:26 AM

click to enlarge images.jpg
Darren McFadden, the former Razorback who now plays football for the Dallas Cowboys, has filed a federal lawsuit against Michael Vick, former financial adviser, and other unnamed parties for alleged mismanagement of his finances.

More here on the case from Court News. Vic,  a broker and not the pro football player, started doing business with McFadden in 2008, his rookie year as a pro when he signed a six-year $60 million deal with the Oakland Raiders. Vick declined a comment when reached by AP. In 2015, McFadden signed a $5.85 million two-year deal with the Cowboys. McFadden's adviser Vick got some attention from ESPN over his name back in 2008, when he was flying high.

The suit says, in part:

Rather than securing for Plaintiff a lifetime of financial security as Defendant Vick promised Plaintiff, Defendant Vick covertly used Plaintiff's income as his personal slush fund to subsidize his own lifestyle and expenses and to invest in his own projects, ultimately, through theft or gross mismanagement, losing and/or misappropriating approximately $15,000,000  of Plaintiffs monies and assets, while further wrongfully encumbering Plaintiff with debts and related penalties. 
McFadden's lawsuit said Vick had used a power of attorney to "engineer prolific withdrawals or transfers of monies from plaintiff's accounts directly to defendant Vick, to convincing plaintiff to create businesses that defendant Vick would ultimately just use to conceal and obfuscate his perpetual theft of plantiff's monies."

One particular example mentioned:

One such business involved Defendant Vick pressuring Plaintiff to start a venture creating and manufacturing bitcoins, guaranteeing Plaintiff that even if the venture did not generate
profits, Defendant would guarantee that Plaintiff would not lose any money. Furthermore, Defendant promised to pay back Plaintiff any funds that Plaintiff invested in such business venture. Instead,  consistent with Plaintiffs recently-revealed pattern and practice Defendant Vick used Plaintiff's fund to start this bitcoin "business'', including using all of Plaintiff's monies to purchase all the necessary  infrastructure and materials, only to retain all the revenues generated or derived from the "business" along with all the corresponding business assets purchased with Plaintiffs money. 

Here's the lawsuit. McFadden's complaint includes an allegation that Vick tried to sell him a building bought with his own money.

McFadden told the Dallas Morning News that he hired Vick coming out of Arkansas in 2008 before the Oakland Raiders made him the fourth overall pick.

McFadden said Vick was "an old family friend that we knew growing up forever and ended up trusting him to do my finances and it didn't work out right for me.

"It's just one of those deals with me as a young guy I wasn't on top of my finances like I should have been and I trusted somebody to take care of everything for me and I don't feel like at the time he had my best interest."

Tags: , , ,

Favorite

Speaking of...

Comments (6)

Showing 1-6 of 6

Add a comment

 
Subscribe to this thread:
Showing 1-6 of 6

Add a comment

More by Max Brantley

Readers also liked…

Most Shared

  • Constituents go Cotton pickin' at Springdale town hall

    Sen. Tom Cotton, cordial to a fault, appeared before a capacity crowd at the 2,200 seat Pat Walker Performing Arts Center at Springdale High tonight to a mixed chorus of clapping and boos. Other than polite applause when he introduced his mom and dad and a still moment as he led the crowd in a recitation of the Pledge of Allegiance — his night didn't get much better from there.
  • Petition calls for Jason Rapert Sewage Tanks in Conway

    A tribute is proposed for Conway's state senator Jason Rapert: naming the city's sewage sludge tanks for him. Petitioners see a similarity.

Visit Arkansas

Little River County gears up for Sesquicentennial

Little River County gears up for Sesquicentennial

Historical entertainment planned for joint celebration of three Southwest Arkansas milestone anniversaries

Most Recent Comments

Blogroll

 

© 2017 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation