An NFL player sued his former financial advisers for $3.9 million, alleging they invested his money poorly in illiquid assets like airplane hangars and life insurance products without his knowledge. The player claims he trusted the advisers, who were long-time friends, and they took advantage of that trust for their own enrichment. The advisers deny the allegations and say the player was aware of all investment decisions.

1. NFL star sues ‘long-term friend' for investment in airplane hangars - Investment News
http://www.investmentnews.com/article/20101025/FREE/101029936/-1/INDaily01[10/25/2010 3:40:57 PM]
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lawsuits , fraud
NFL star sues ‘long-term friend' for
investment in airplane hangars
Saints' Alex Brown claims adviser Michael Rowan and associates got
him into bad investments, including plane hangars and storage facilities.
By Bruce Kelly
October 25, 2010 3:51 pm ET
A defensive end with the NFL's defending Super Bowl champs, the New Orleans Saints, is
suing his former team of financial advisers, alleging that they “abused the trust” of the player
and his wife, “and embarked on schemes intended to enrich themselves at the expenses” of
the couple's financial future.
Alex Brown, who left the Cicago Bears
this year to sign with the Saints, and his
wife Karimar Brown, sued his two
advisers and the firm Capital
Management Group Wealth Advisors Inc.,
for $3.9 million in compensatory damages
and $16 million in private damages.
Capital Management Group is based in
High Point, N.C.
The suit, which was filed last month in
Illinois state court, focuses on a series of
illiquid private investments in airplane
hangars, storage facilities, a real estate
investment concern and variable universal
life insurance products.
The advisers who allegedly sold the
illiquid investments are Michael Rowan,
president of Capital Management Group,
and Jason Jernigan. The two formed the
firm together, which markets itself as a
provider of investment advice to
professional athletes, the lawsuit said.
Mr. Brown and Mr. Rowan met while they
were attending the University of Florida, according to the lawsuit. In a separate lawsuit about
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2. NFL star sues ‘long-term friend' for investment in airplane hangars - Investment News
http://www.investmentnews.com/article/20101025/FREE/101029936/-1/INDaily01[10/25/2010 3:40:57 PM]
Recommend
the matter, Mr. Rowan is characterized as Mr. Brown's “long-term friend.” In 2001, Mr. and
Ms. Brown “began to accept, without question, [the advisers'] recommendations for the
investment of their money,” according to the lawsuit.
Mr. Rowan did not return a call this afternoon left at Capital Management Group.
The suit also names an accountant, James Laubham, who was allegedly aware of the
advisers' converting a loan from Mr. Brown to Capital Management Group into an investment
and not telling Mr. Brown.
Mr. Laubham did not return calls to comment by deadline.
In the separate lawsuit also filed last month in Illinois state court, Mr. Brown is also suing
Wealth Capital Management Group, an advisory firm based in North Royalton, Ohio, where
Mr. Jernigan is also affiliated. Wealth Capital Management and Mr. Jernigan could not be
reached by deadline.
According to records filed with the Securities and Exchange Commission, Wealth Capital
Management has no assets under management and up to 25 clients.
Also named in that second suit is Anthony Delfre, who allegedly took part in a fraudulent
scheme to make money by appearing to organize a business to recoup foundering
investments that Mr. Rowan and Mr. Jernigan recommended, according to the suit.
Mr. Delfre previously worked with Mr. Jernigan at Prim Securities Inc., according to the
lawsuit. Mr. Delfre also owns Wealth Capital Management Group, according to the second
lawsuit.
Mr. Delfre “completely denies the allegations,” said Brian Riordan, Mr. Delfre's attorney and
a partner at Clausen Miller PC. “It was a workout. Alex knew everything that was going on,”
he said. “I think it's unfortunate that Alex has brought a lawsuit against people who were
trying to help him.”
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Chippewa Partners wrote:
State court or arbitration?
10/25/2010 4:36 PM EDT
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