ATTENTION PROFESSIONAL ATHLETES: National Investment Fraud Lawyers KlaymanToskes Cautions Against Financial Advisor Fraud

Rhea-AI Summary

KlaymanToskes warns NBA, MLB, and professional athletes about escalating securities fraud risks. Securities attorney Lawrence L. Klayman highlights that athletes are increasingly targeted due to significant financial assets. He emphasizes the duty of brokerage firms to supervise financial advisers managing athletes' accounts. Fraud schemes such as unauthorized investments and undisclosed conflicts of interest are prevalent. The firm encourages athletes to report any suspicious activities and has successfully recovered over $228 million for investors in FINRA arbitrations.

Positive

• KlaymanToskes has recovered over $228 million for investors in FINRA arbitrations.
• The firm is actively addressing securities fraud risks affecting professional athletes.

Negative

• Professional athletes are increasingly targeted by financial fraud due to their wealth.
• Ongoing fraudulent schemes such as unauthorized investments and unsuitable recommendations impact athletes.

LOS ANGELES--(BUSINESS WIRE)-- National investment fraud lawyers KlaymanToskes notifies NBA, MLB, and other professional athletes to protect themselves against securities fraud in light of the ongoing fraudulent schemes impacting athletes today.

According to securities attorney Lawrence L. Klayman, Esq., “With the record amount of money in sports, professional athletes are increasingly becoming a bigger target of financial fraud. Brokerage firms have a duty to supervise the conduct of their financial advisers, including those who manage professional athletes’ accounts, and their failure to do so may result in liability.”

Unfortunately, common fraud schemes, such as unauthorized investments, undisclosed conflicts of interest, and unsuitable recommendations, continue to impact professional athletes today, many of whom are short of time and experience to guard against financial misconduct. For instance, in December 2021, FINRA banned former Morgan Stanley (NYSE: MS) broker Darryl M. Cohen for failing to cooperate with its investigation into allegations of mismanagement of accounts and “suspicious money movement,” according to a disclosure on his BrokerCheck record. The securities regulator investigated Cohen after several customers complained, many of whom were current and former professional athletes.

The sole purpose of this release is to investigate the sales practices of full-service brokerage firms concerning professional athletes’ accounts for FINRA violations, including a failure to supervise. NBA, MLB, and other professional athletes who have information relating to the manner in which their financial advisors handle their accounts, are encouraged to contact Lawrence L. Klayman, Esq., at 888-899-2034, and download our Special Investor Report.

About Us

KT is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. KT has recovered more than $228 million for investors in FINRA arbitrations. KT has office locations in California, Florida, New York, and Puerto Rico.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220222006270/en/

KlaymanToskes

Lawrence L. Klayman, Esq.

888-899-2034

lklayman@klaymantoskes.com

www.klaymantoskes.com

Source: KlaymanToskes

FAQ

What actions is KlaymanToskes taking against securities fraud for athletes?

KlaymanToskes is investigating sales practices of brokerage firms to protect professional athletes from fraud.

Why are athletes becoming targets of financial fraud?

Athletes are increasingly targeted due to the significant financial assets they possess.

What are common fraud schemes affecting professional athletes?

Common schemes include unauthorized investments, undisclosed conflicts of interest, and unsuitable recommendations.

How much has KlaymanToskes recovered for investors?

KlaymanToskes has recovered over $228 million for investors in FINRA arbitrations.

Who should athletes contact if they suspect financial fraud?

Athletes should contact Lawrence L. Klayman at KlaymanToskes if they have concerns about their financial advisors.