MLB Players File Lawsuit Against Investment Group
USA Today has reported that former major league All-Stars Cliff Floyd and Rondell White are suing an investment group for fraud. They are pursuing $12.25 million in damages stemming from an alleged multi-million-dollar securities fraud and real estate scam.
Supposedly, these players weren’t the only ones who were investment fraud victims, as New York Mets All-Star third baseman David Wright and four other players invested in the property near the Garden State's Hackensack River. However, only Floyd and White were included in the lawsuit.
The fraud claim is against Kolinksy Hill Financial Group, based in New Jersey. According to White, he invested in November 2007 and lost $1 million. Floyd allegedly lost $1.25 million. The New Jersey Office of the Attorney General is reportedly investigating the case.
The attorney representing White and Floyd told SI.com “the defendants were negligent and careless at minimum, and intentional at worst, in saying that they could develop this property and make a profit. And the ballplayers didn’t have knowledge and sophistication in real estate development, so they took advantage of that. They defrauded them. They tried to serve as the seller and the financial adviser urging them to go into the deal.”