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dam i just read that damon and nady got caught in one of these fraud schemes , heres the article .....
TAMPA - Johnny Damon, earning $13 million this season, cannot pay his bills.
Xavier Nady, earning $6.55 million, cannot purchase an apartment in New York.
The issues facing Damon and Nady - both New York Yankees outfielders and both clients of agent Scott Boras - stem from the alleged $8 billion fraud schemeinvolving billionaire financier Robert Allen Stanford.
Damon, 35, and Nady, 30, told FOXSports.com on Friday morning that their finances are frozen because of money they have with a Stanford company.
On Monday, the Securities and Exchange Commission froze all assets of three entities - Stanford International Bank, Stanford Group Co., and Stanford CapitalManagement - all managed by Robert Allen Stanford. Those were the only three entities whose assets were frozen by the SEC.
"I can't pay bills right now," Damon said at the Yankees' spring training facility in Tampa. "That started on Tuesday. I had to pay atrainer for working out during the offseason. I told him, 'Just hold on for a little bit and hopefully all this stuff gets resolved.'"
Nady faces similar concerns.
"I'm affected in some ways. I have the same (advisor) as Johnny," Nady said. "He said I didn't have money with Stanford (investments).But all my credit card accounts are frozen right now because of that situation. I'm trying to get an apartment in New York. I can't put a credit carddown to hold it."
Boras said his clients have no reason to worry about losing money.
"Our personal-management auditors have looked into the financial elements of it," Boras said. "None of our clients is in any financialjeopardy."
Both Damon and Nady said they were told by their financial advisors that the matter could be resolved within a few days. Damon said he was told that his moneywas insured by a bank in New York, which Boras identified as the Bank of New York.
First baseman Mark Teixeira, another Boras client who is a member of the Yankees, said he did not have money with Stanford. Third baseman Alex Rodriguez, whoalso is represented by Boras, was not available for comment.
Damon, Nady and other Boras clients use Personal Management Consultants, a division of the Scott Boras Corporation, to monitor their assets.
Players pay PMC a percentage of their earnings on top of the commission they pay Boras. The company employs CPAs who check investments, audit teams, do taxwork, and perform other services.
"I talked to PMC, talked to guys at Stanford Financial Group," Damon said. "The first thing they kept saying was, 'You should be OK.' Iwas like, 'Not should be OK.' They clarified it that yeah, I've got nothing to worry about. But unfortunately, the money is frozen."
PMC does not make actual investments, Boras said.
"We have no link to Stanford, no financial connection to any investment company with any of our clients," Boras said. "We do not invest ourclients' money and receive no compensation for it, unlike other agencies."
On Thursday, The New York Post reported that IMG, a sports management agency, quietly agreed to steer clients looking for investment advice to StanfordFinancial Group, potentially exposing them to millions of dollars in losses resulting from the financial firm's alleged fraud.
According to the report, which cited three sources with knowledge of the situation, IMG and Stanford have a quid-pro-quo agreement under which StanfordFinancial pays IMG a low- to mid-seven-figure consulting fee in exchange for IMG advising its clients to have their money managed by Stanford.
The SEC alleges that Stanford ran an $8 billion fraud that involved luring customers into buying certificates of deposit that carried "improbable andunsubstantiated high interest rates." Stanford's operation claimed the CDs were backed by the U.S. Federal Deposit Insurance Corp.
"I have not gotten into the CDs," Damon said. "But I will tell you one thing: When I did see the CDs that were that high, I thought, 'Whydon't I just do that?' It's a good thing I didn't."
Still, both Damon and Nady said they were uneasy about the state of their finances.
"I hope we're all safe," Nady said. "You're concerned because of things that have happened these last few months. To get that kind ofnews is never good news. You've got to hope you're OK."
Asked if the situation makes him nervous, Damon responded candidly.
"It does," he replied. "I'm not sure if the banks we owe mortgages would understand our money's frozen, start putting penalties onstuff. The whole financial world is all messed up right now. Hopefully they will go on a case-by-case basis. I'm not sure the mortgage is going to be paidthis month. But hopefully it's only a couple of days.
TAMPA - Johnny Damon, earning $13 million this season, cannot pay his bills.
Xavier Nady, earning $6.55 million, cannot purchase an apartment in New York.
The issues facing Damon and Nady - both New York Yankees outfielders and both clients of agent Scott Boras - stem from the alleged $8 billion fraud schemeinvolving billionaire financier Robert Allen Stanford.
Damon, 35, and Nady, 30, told FOXSports.com on Friday morning that their finances are frozen because of money they have with a Stanford company.
On Monday, the Securities and Exchange Commission froze all assets of three entities - Stanford International Bank, Stanford Group Co., and Stanford CapitalManagement - all managed by Robert Allen Stanford. Those were the only three entities whose assets were frozen by the SEC.
"I can't pay bills right now," Damon said at the Yankees' spring training facility in Tampa. "That started on Tuesday. I had to pay atrainer for working out during the offseason. I told him, 'Just hold on for a little bit and hopefully all this stuff gets resolved.'"
Nady faces similar concerns.
"I'm affected in some ways. I have the same (advisor) as Johnny," Nady said. "He said I didn't have money with Stanford (investments).But all my credit card accounts are frozen right now because of that situation. I'm trying to get an apartment in New York. I can't put a credit carddown to hold it."
Boras said his clients have no reason to worry about losing money.
"Our personal-management auditors have looked into the financial elements of it," Boras said. "None of our clients is in any financialjeopardy."
Both Damon and Nady said they were told by their financial advisors that the matter could be resolved within a few days. Damon said he was told that his moneywas insured by a bank in New York, which Boras identified as the Bank of New York.
First baseman Mark Teixeira, another Boras client who is a member of the Yankees, said he did not have money with Stanford. Third baseman Alex Rodriguez, whoalso is represented by Boras, was not available for comment.
Damon, Nady and other Boras clients use Personal Management Consultants, a division of the Scott Boras Corporation, to monitor their assets.
Players pay PMC a percentage of their earnings on top of the commission they pay Boras. The company employs CPAs who check investments, audit teams, do taxwork, and perform other services.
"I talked to PMC, talked to guys at Stanford Financial Group," Damon said. "The first thing they kept saying was, 'You should be OK.' Iwas like, 'Not should be OK.' They clarified it that yeah, I've got nothing to worry about. But unfortunately, the money is frozen."
PMC does not make actual investments, Boras said.
"We have no link to Stanford, no financial connection to any investment company with any of our clients," Boras said. "We do not invest ourclients' money and receive no compensation for it, unlike other agencies."
On Thursday, The New York Post reported that IMG, a sports management agency, quietly agreed to steer clients looking for investment advice to StanfordFinancial Group, potentially exposing them to millions of dollars in losses resulting from the financial firm's alleged fraud.
According to the report, which cited three sources with knowledge of the situation, IMG and Stanford have a quid-pro-quo agreement under which StanfordFinancial pays IMG a low- to mid-seven-figure consulting fee in exchange for IMG advising its clients to have their money managed by Stanford.
The SEC alleges that Stanford ran an $8 billion fraud that involved luring customers into buying certificates of deposit that carried "improbable andunsubstantiated high interest rates." Stanford's operation claimed the CDs were backed by the U.S. Federal Deposit Insurance Corp.
"I have not gotten into the CDs," Damon said. "But I will tell you one thing: When I did see the CDs that were that high, I thought, 'Whydon't I just do that?' It's a good thing I didn't."
Still, both Damon and Nady said they were uneasy about the state of their finances.
"I hope we're all safe," Nady said. "You're concerned because of things that have happened these last few months. To get that kind ofnews is never good news. You've got to hope you're OK."
Asked if the situation makes him nervous, Damon responded candidly.
"It does," he replied. "I'm not sure if the banks we owe mortgages would understand our money's frozen, start putting penalties onstuff. The whole financial world is all messed up right now. Hopefully they will go on a case-by-case basis. I'm not sure the mortgage is going to be paidthis month. But hopefully it's only a couple of days.
