The Financial Industry Regulatory Authority announced Thursday that former financial adviser Jeff Rubin accepted its findings that he made unsuitable investment recommendations to 32 players. Those investments resulted in the loss of approximately $40 million in an illegal Alabama Casino operation. Rubin, who founded Pro Sports Financial, used his relationship with prominent agent Drew Rosenhaus to help sign at least 18 one-time Rosenhaus clients to invest in the failed casino project. Among those clients were past and present NFL players Jevon Kearse, Fred Taylor, Frank Gore, Plaxico Burress, and Terrell Owens. The NFL Players Association had been investigating the relationship between Rubin and Rosenhaus at one point, but it is unclear if that investigation is ongoing. Rubin, who charged approximately $40,000 per year to provide "financial-related concierge" services to professional athletes, was given an ownership interest in the project and was paid at least $500,000 for the investment referrals and other related work he provided to the casino, according to the documents. Rubin also accepted FINRA's finding that he placed the majority of one unidentified client's liquid net worth – approximately $3.5 million – in "high-risk, illiquid securities" that lost the player $3.2 million. Although Rubin accepted FINRA's findings, he did not admit or deny charges. By accepting FINRA's findings, Rubin has been barred for life from working in a FINRA member firm in any capacity. "This case demonstrates how broker misconduct can target high-income, inexperienced, and vulnerable investors," FINRA's executive vice president and chief of enforcement, Brad Bennett, said in Thursday's news release. "Jeffrey Rubin took advantage of professional athletes who placed their trust in him."
Terrell Owens' former financial adviser made unsuitable investment recommendations
POSTED: 8:23 PM Mar 07 2013 UPDATED: 8:23 PM Mar 07 2013
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