It’s a challenge for NBA players — many come from backgrounds where they didn’t have money growing up, then suddenly at age 19 or so they have millions. They don’t always handle it well.
The smart ones bring in a financial manager. But what if that person is a crook?
The Washington Examiner tells the story of the former manager for Steve Francis and Ty Lawson, among other pro athletes, who is now headed to jail. (Via Eye On Basketball)Nathan A. Peake, 41, of Silver Spring, admitted in federal court in the District that he didn’t file tax returns from 2000 through 2007 and diverted about $5.8 million in management and agent fees from his business to personal accounts.
He also admitted to misappropriating proceeds from a $3.5 million line of commercial credit that one of his athlete clients guaranteed and paid off.
In the end, you are responsible for you. And your money.
Or as Dave Navarro (and Agent Mulder) told us, “trust no one.”