NHL Players Victims of $25MM Scam by Real Estate Developer

ESPN posted this item today. It gives some insight into another side of hockey players, what they do with the enormous sums of money they make, and how they can be victimized by unscrupulous individuals.

DEVELOPER CHEATED 25 NHL PLAYERS OUT OF $25 MILLION
ESPN.COM/AP, June 20, 2009

NEW YORK -- A golf resort developer duped nearly two dozen NHL players out of $25 million, blowing the money on gratuitous parties that were attended by former Yankees players Roger Clemens and Reggie Jackson, according to a lawsuit filed Thursday.


The New York Post reported in Friday's edition that 19 former and current NHL players filed suit against Ken Jowdy, alleging they invested the money with the Las Vegas-based golf-course mogul to develop two luxury resorts in Mexico -- a project they say is seven years behind schedule.


Instead, according to the players, Jowdy squandered the money on "lavish parties" to impress the likes of Clemens, Jackson and banned hits king Pete Rose, among others, who Jowdy hoped would eventually buy real estate in the planned resorts.


The lawsuit seeks the return of the $25 million they invested and $15 million in damages.


Former New York Rangers and Islanders defensman Bryan Berard and one-time Islanders captain Michael Peca were hit the hardest, each losing $700,000 in the deal, according to the filing in Los Angeles County Superior Court.


"It's particularly uncomfortable for all," Berard told the Post. "He's taken our money without telling us, and it's supposedly all gone."


Other players involved in the alleged scam include: Chris Simon, who played for both the Rangers and Islanders; former Rangers Greg deVries, Steve Rucchin and Rem Murray; former New Jersey Devil Turner Stevenson; and Sergei Gonchar of the Stanley Cup champion Pittsburgh Penguins.

Given the age that they are now getting the big payoffs, I wonder if the NHLPA has the foresight (or the mandate and support) to set up some sort of financial counseling system.

It seems that very few of those who get these sudden influxes of large amounts of money are capable of protecting themselves from the unscrupulous vultures ready to swoop in for a quick score.

"blowing the money on gratuitous parties"

Diddle me! I'm guessing these are the pin-the-tail-on-the-donkey type parties.

What or who do I have to do to get an invite to one of these parties?

Does anyone really feel sorry for them, though? I mena, really, have they ever had to visit the EI offices or put family vacation on hold due to layoffs?

:^^^^:

I certainly won't be shedding any tears.

wprager wrote:Does anyone really feel sorry for them, though? I mena, really, have they ever had to visit the EI offices or put family vacation on hold due to layoffs?

Wahh my golf course investment went south...

how 'bout all the tent cities popping up in the US because people are getting foreclosed...

Lineups at food kitchens seeing record numbers...

I am sorry but if you are stupid enough to give your money to someone and watch the project be 7 years late then you are not getting tears from me.

To be fair, while they certainly wouldn't be living in tents and facing the hardships that many in the US are currently facing, there are numerous reports of pro athletes going bankrupt because of poor financial advice.

In most situations, it's a case of young kids getting craploads of cash before they are mature enough to know what to do with it - likely one of the root causes of the drug and alcohol problem as well.

Acrobat wrote:To be fair, while they certainly wouldn't be living in tents and facing the hardships that many in the US are currently facing, there are numerous reports of pro athletes going bankrupt because of poor financial advice.

In most situations, it's a case of young kids getting craploads of cash before they are mature enough to know what to do with it - likely one of the root causes of the drug and alcohol problem as well.

While you could say that not having craploads of money kept me away from some more expensive habits, it wasn't the lack of money that kept me away from most of the others. Who knows, maybe I am a shining paragon o virtue after all, but I had enough money when growing up to get into stuff I didn't. While it's certainly a contributing factor, it is not -- should not be used as -- an excuse.

Athletes take drugs because they make the wrong choices, and choices are free.

wprager wrote:

Acrobat wrote:To be fair, while they certainly wouldn't be living in tents and facing the hardships that many in the US are currently facing, there are numerous reports of pro athletes going bankrupt because of poor financial advice.

In most situations, it's a case of young kids getting craploads of cash before they are mature enough to know what to do with it - likely one of the root causes of the drug and alcohol problem as well.

While you could say that not having craploads of money kept me away from some more expensive habits, it wasn't the lack of money that kept me away from most of the others. Who knows, maybe I am a shining paragon o virtue after all, but I had enough money when growing up to get into stuff I didn't. While it's certainly a contributing factor, it is not -- should not be used as -- an excuse.

Athletes take drugs because they make the wrong choices, and choices are free.

Agreed. This is why the highlighted words.

However, it's hard to get into trouble WRT expensive habits when you can't afford them. It's the same reason that some of the private schools in the area known for the family $$$ seem to also have the biggest drug problems. Like any salesman, a dealer will go where the profits are largest.

I respect that there is certainly issues with young people having money at an early age and not being savy enough to protect it. There are some guys on this list who should know better than that. Also, letting something slide without asking tough questions for SEVEN years is where I have a problem. You either really don't need that money or you are careless and get what you deserve.

I guess a multimillionaire getting bilked out of a few hundred thousand dollars because they weren't paying attention is not something I will feel bad about. A guy who works his whole life and does the right things by investing for retirement in 'blue chip' stocks and then loses his entire retirement fund because of a global economy, that is where I chose to spend my sympathy...

I still stand by what I said: choice is free.

I agree with both of the above.


I have little patience for those who choose to take advantage of people
who work hard and save diligently, only to see it wiped out due to the
greed and mismanagement of overpaid "suits" with their sense of
entitlement.

My statement wasn't meant to elicit sympathy, only to state facts. And to point out (subtly, I admit) that if the NHLPA truly meant to look out for its constituents, it could do so quite easily. Yet it chooses not to.

I understand that. I also think their agents bear some of the blame too. They should act as true representatives and not JUST worry about the contracts. They should act as management consultants helping players with financial decisions, especially young players.

MurderOnIce wrote:I understand that. I also think their agents bear some of the blame too. They should act as true representatives and not JUST worry about the contracts. They should act as management consultants helping players with financial decisions, especially young players.

Ah, but that would take time away from their main agenda - taking advantage of the next patsy player they can get their hands on.