Ricky Williams, the ex-NFL and University of Texas running back, is suing Peggy Fulford and King Management Group & Associates for securities fraud. He says that he and his wife were bilked of $6 million. Now, Williams wants an injunction, a restraining order, and damages for breach of contract, theft, and breach of fiduciary duty.
Williams claims that Fulford has been in control of most of his approximately $11 million fortune since 2007 when he and his wife went into an oral agreement with the financial adviser and King Management to have them manage their assets. He says that Fulford told them she had graduated from both Harvard Law School and Harvard Business Law School and that she was licensed to practice law in Texas. Williams is now saying that no record exists of Fulford attending either graduate program or having been admitted to the State Bar of Texas. Fulford lived in Houston between 2011 and 2013 before moving out of state.
Williams says that he and Fulford established a joint checking account at SunTrustBank and that without his knowing or consent she obtained and used a debit card linked to the account. It wasn’t until last year when the IRS called him to ask about his 2010 tax return that Williams discovered that Fulford had removed $6 million from his account via debts, wire transfers, cash withdrawals, and checks and that the money was used for mortgage payments, retail purchases, credit card bills, other debts, transfers to other accounts, and other purposes. She also purportedly pretended to be his wife when she spoke to the government agency.
The ex-pro football player claims that because she gave him no way to substantiate nearly $800,000 in deductions she had claimed, he was forced to pay the IRS a $350,000 penalty for just that year. He also says that all Fulford left them with is $1.9 million in a private equity fund that they cannot draw on for four more years. Williams’ legal team says that although their client has other sources of income, he relies on Fulford to issue a stipend to cover monthly expenses and these payments have not been consistent.
Williams contends that Fulford and her management group gave him “potentially falsified statements” of his finances and that these were sporadic at best. He says they never gave him full reports even though he repeatedly asked for them.
Athletes and Securities Fraud
Unfortunately, because of their fast wealth, professional athletes are favorite targets of financial fraudsters. Over the years, Shepherd Smith Edwards and Kantas, LTD LLP has represented professional athletes and other celebrities with securities fraud cases. Contact our Texas securities law firm today.
Ex-NFL star Ricky Williams suing financial adviser for impersonating his wife to IRS, UPI, December 17, 2013
Ricky Williams Claims Adviser Took Millions, Courthouse News, December 17, 2013
Professional Athletes, Celebrities Often Targeted for Securities Fraud, Stockbroker Fraud Blog, August 14, 2013
US Will Likely Arrest Two Ex-JPMorgan Chase Employees Over Trading Losses Related to the London Whale Debacle, Institutional Investor Securities Blog, August 10, 2013