Millions Lost!!! It Can Happen To YOU!!!!
Freeney sues Bank of America for $20M in fraud case
Free agent linebacker Dwight Freeney is suing one of the nation’s largest banks, alleging it swindled him out of more than $20 million and forced him to close an emerging Hollywood restaurant business.
Freeney and his company, Roof Group LLC, sued Bank of America in a California superior court weeks ago. The former Colts and Chargers defender, a seven-time Pro Bowler, went public with the lawsuit Tuesday.
The lawsuit claims Freeney was taken advantage of after trusting the bank’s wealth management division with his assets.
Bank of America disputes the claims.
“Although we sympathize with Mr. Freeney as the victim of a crime, the bank had nothing to do with the criminal scheme,” said Bill Halldin, a spokesman for Bank of America.
Halldin says the two people responsible for the wrongdoing have already been convicted in criminal court and ordered to pay restitution.
A former Bank of America Merrill Lynch adviser and a business associate were arrested in 2012 after fraudulently wiring $2.2 million out of Freeney’s account.
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“The primary wrongdoer never worked for the bank or any of its affiliates,” said Halldin. “And the other person committed her criminal conduct after she left (the bank) in 2010, after she left Merrill Lynch, he hired her to work personally for him.”
But in the lawsuit, Freeney alleges the nation’s second-largest bank “participated in and aided and abetted” an elaborate, malicious scheme that began in 2010.
Freeney was recruited that year by Bank of America to become a client of its division that serviced affluent clients and clients with high net worth, the lawsuit alleges.
“Dwight’s a smart guy,” said his attorney Jeffrey Isaacs. “He was looking to make sure his money was safe and that he would have a financial future when his playing days were over.”
Fast forward two years and Isaacs claims Freeney had lost $20 million.
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Among his losses was Freeney’s Los Angeles restaurant, Rolling Stone. He had secured an exclusive licensing agreement with Rolling Stone magazine and was on track to open a second eatery in California, Isaacs said.
Due to the financial catastrophe, the lawsuit alleges, Freeney was forced to shut down the restaurant and put off any future ventures.
Freeney asks in the lawsuit for $20 million to compensate what he lost out of pocket. He is also seeking punitive damages.
Bank of America is expected to respond to the complaint Wednesday.
“We are fully prepared and Dwight is fully prepared that it will be a fight,” Isaacs said.
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NFL Linebacker Alleges Bank Of America ‘Aided & Abetted’ $20M Fraud Scheme
LOS ANGELES (CBSLA.com) — One of the NFL’s highest-paid defensive players announced a lawsuit Tuesday alleging Bank of America “aided and abetted” a fraud scheme that cost him $20 million.
Attorneys for Dwight Freeney, a defensive end and linebacker who last played for the San Diego Chargers met with reporters in downtown Los Angeles to officially announce filing the complaint in Los Angeles Superior Court.
According to the lawsuit (PDF), Freeney authorized BofA in 2010 to manage his assets, including his NFL salary.
In addition to BofA, the complaint names Michael Bock, a senior vice-president of the bank’s Global Wealth & Investment Management unit, as a defendant.
Attorneys say BofA did not disclose to Freeney that Eva Weinberg – who was assigned by BofA to manage Freeney’s business affairs – was only a part-time employee at BofA and was not licensed to give Freeney investment advice.
The complaint also alleges BofA, Bock and Weinberg also lied to Freeney about the true identity of Michael Stern, who was brought onto Freeney’s BofA financial team.
According to attorneys, Stern was introduced to Freeney as “Michael Millar”, a successful Miami Beach businessman, but who was allegedly linked to failed real estate ventures and allegations of bribing Miami city officials.
Once Weinberg and Stern gained control of Freeney’s finances, they “promptly went about stealing at least $8.5 million,” according to the complaint.
“BofA’s deceitfulness is at the heart of our lawsuit,” said attorney Jeffrey Isaacs. “BofA kept Dwight completely in the dark about the qualifications and the backgrounds of the people managing his money.”
A statement from BofA spokesman Bill Halldin denied the bank played any role in the alleged scheme.
“The two people responsible for this wrongdoing have already been convicted,” Halldin said. “The primary wrongdoer never worked for the bank or any of its affiliates and the other person committed her criminal conduct after she left Merrill Lynch in 2010.”
Freeney, who has the 20th best record in NFL history for sacking quarterbacks, earned a Super Bowl ring in 2007, and played in three AFC championship games, has played for the Chargers for the last two seasons. He is currently an unrestricted free agent.
Dwight Freeney sues Bank of America for alleged role in $20M fraud scheme
A lawsuit filed by NFL player Dwight Freeney in February alleges Bank of America “aided and abetted” an elaborate fraud scheme that caused the pass rusher to lose more than $20 million in two years.
Freeney, the victim of swindling by two former business associates who were convicted in 2013, claims the bank should be held liable for the actions of one of its former employees. Freeney’s attorneys announced the lawsuit Tuesday. ESPN’s Adam Schefter posted the statement on Twitter. CBS Los Angeles obtained the lawsuit, which was filed in State Superior Court, Los Angeles.
Dwight Freeney (Getty Images)
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“In 2010, Dwight Freeney authorized Bank of America to manage his assets, including his NFL salary,” Jeffrey B. Isaacs, one of Freeney’s attorneys, said in a statement. “Two years later, Dwight lost more than $20 million because of BofA’s fraud scheme.”
Bank of America denied wrongdoing when contacted Tuesday, saying the corporation has been wrongfully associated with the actions of a person it employed before the crimes occurred.
“Although we sympathize with Mr. Freeney as the victim of a crime, the bank had nothing to do with the criminal scheme,” BOA spokesman Bill Halldin told Perform Media. “The two people responsible for this wrongdoing have already been convicted. The primary wrongdoer never worked for the bank or any of its affiliates, and the other person committed her criminal conduct after she left (Bank of America’s financial management division) Merrill Lynch in 2010.”
The timeline of events in the lawsuit starts in 2010, when Freeney entrusted Merrill Lynch employee Eva Weinberg with the management of his personal finances and business endeavors. That included Rolling Stone LA, a now-closed Hollywood restaurant owned by Freeney.
Weinberg left her job with the bank several months after meeting Freeney. That is when she introduced the former Colts and Chargers player to her romantic partner, a developer named Michael Stern.
Stern operated under the alias of Michael Millar and falsely told Freeney that he was a multimillionaire businessman interested in investing $7 million in Freeney’s restaurant.
But Stern was actually in bankruptcy, with upward of $23,000 in debt, and had no intention of investing in the restaurant. Instead, operating under the guise of Freeney’s “protector, mentor and friend,” Stern organized an employee-less company to oversee Rolling Stone LA and opened two bank accounts in Freeney’s name — one with Bank of America and another with Citibank.
Between June 2010 and October 2011, Stern, with the help of Weinberg, transferred more than $9 million of Freeney’s money from the Citibank account to the Bank of America account without Freeney’s knowledge.
Weinberg and Stern were arrested by the FBI in 2012 and charged with separate counts related to the swindling. The FBI believed the couple was attempting to leave the United States at the time.
Stern, considered the frontman for the scheme, pleaded guilty in January 2013 to federal charges of access device fraud. He was sentenced to five years in prison and ordered to pay $2.6 million in restitution to Freeney.
Weinberg received a six-month prison sentence and was ordered to pay Freeney $2.2 million in restitution after pleading guilty to being an accessory.
Freeney has since sued his former attorneys for “willfully blinding themselves to indications that Freeney’s business partners were defrauding him of hundreds of thousands of dollars a month,” according to the suit.
His latest lawsuit against Bank of America also names Michael Bock as a defendant along with a web of other bank employees and associates of Freeney’s. Bock was a senior vice president with the bank at the time and the head of Freeney’s advisory team, according to the suit. He also is Weinberg’s ex husband.
“This entire scheme could not have succeeded without the substantial involvement and approval of BofA,” Isaacs said Tuesday. “It was a nightmare scenario: My client went to one of the nation’s biggest banks and asked for its help managing his finances. And what did BofA do? BofA treated Dwight like a mark in a con game.”
The 34-year-old Freeney, currently a free agent, has said he intends to play in his 14th NFL season “if the right situation comes along.”
