Bruce Wilkerson, the former tackle of the Green Bay Packer, has been awarded $2 million against Resource Horizons Group. The ex-NFL player lost $650,000 in an alleged Ponzi scam run by Robert Gist, an alleged rogue broker at the Georgia-based financial firm.
Unfortunately for Wilkerson the former pro football player is unlike to get his money back, which was a substantial chunk of his net worth. The now defunct broker-dealer closed shop in November after it was slapped with more $4 million in judgments in two arbitration awards that it could not afford to pay. The Financial Industry Regulatory Authority has suspended the firm for not complying with the award, as well as canceled its license.
The arbitration awards are also linked to Gist, who in 2013 consented to pay $5.4 million to resolve Securities and Exchange Commission charges accusing him of running the Ponzi scam and converting the money for personal use over a 10-year period. At least 32 customers were allegedly bilked.
Gist is accused of using his Gist, Kennedy & Associates Inc., an entity that is not registered nor is it affiliated with Resource Horizons, to make false customer statements. The firm hired him in 2001 even though he already had customer disputes on record.
The $4 million FINRA arbitration awards were also against Resource Horizons executives David Miller and Kelly Miller. They are accused of failing to supervise Gist, not recognizing warning signs that something was amiss, as well as of negligence. The couple was held jointly liable with the firm, and they have since filed for bankruptcy protection. According to InvestmentNews, Miller is now with Kovack Securities Inc.
Unfortunately, professional athletes are among those targeted for securities fraud. Our securities fraud law firm represented many who have lost millions of dollars because their investments were improperly handled, they received bad investment advice, or were blatantly defrauded. Contact Shepherd Smith Edwards and Kantas, LTD LLP today.
Ex-NFL player left out in the cold after $2 million award, InvestmentNews, March 16, 2015
More Blog Posts:
Resource Horizons Group’s Future Hangs in Balance Following $4M FINRA Arbitration Award, Stockbroker Fraud Blog, September 25, 2014
Sun Antonio Spurs Star Tim Duncan Files Texas Investment Adviser Fraud Case, Stockbroker Fraud Blog, January 31, 2015
Madoff Ponzi Scam Victims Recover Over $10 Billion, Institutional Investor Securities Blog, December 5, 2014