founder of International Management Associates, committed suicide today in jail. Wright was convicted Wednesday of operating an investment scheme that bilked millions of dollars from clients, including many NFL players.
Kirk Wright bilked investors, including many current and former NFL players out of at least at least $20 million. He fraudulently provided investors with reports claiming his firm, International Management Associates, had over $180 million in assets. But when he was finally busted, there was less than $500,000 accounted for. In February 2007, Wright was ordered to pay nearly $20 million as part of a default judgment by the U.S. District Court in Atlanta. In March 2007, six current and former players sued the NFL and its union, seeking to recoup $20 million they lost in this fraud scheme. The NFLPA, in response to significant financial losses experienced by several NFL players, began the Financial Advisor Program, a first-of-its-kind program aimed at protecting players against incompetent and fraudulent advisors.
I wrote an article on Kirk Wright in Sports Business Journal: "Pro athletes must use caution to avoid financial runaround" (August 28, 2006). I also used this as a case study in my book, .
Former Denver Broncos player Steve Atwater was hired by Wright to solicit investors for IMA and also invested $2.7 million of his own money. After learning of Wright's death Atwater told the Atlanta-Journal Constitution, "It's a tragic deal all around."
Sad story. Hopefully there are some valuable lessons learned here.
--Marc Isenberg
Kirk Wright bilked investors, including many current and former NFL players out of at least at least $20 million. He fraudulently provided investors with reports claiming his firm, International Management Associates, had over $180 million in assets. But when he was finally busted, there was less than $500,000 accounted for. In February 2007, Wright was ordered to pay nearly $20 million as part of a default judgment by the U.S. District Court in Atlanta. In March 2007, six current and former players sued the NFL and its union, seeking to recoup $20 million they lost in this fraud scheme. The NFLPA, in response to significant financial losses experienced by several NFL players, began the Financial Advisor Program, a first-of-its-kind program aimed at protecting players against incompetent and fraudulent advisors.
I wrote an article on Kirk Wright in Sports Business Journal: "Pro athletes must use caution to avoid financial runaround" (August 28, 2006). I also used this as a case study in my book, .
Former Denver Broncos player Steve Atwater was hired by Wright to solicit investors for IMA and also invested $2.7 million of his own money. After learning of Wright's death Atwater told the Atlanta-Journal Constitution, "It's a tragic deal all around."
Sad story. Hopefully there are some valuable lessons learned here.
--Marc Isenberg