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You may have lost money in your investment portfolio,
due to mismanagement and not even know it.

Legal woes continue for pro athletes' former money manager

Boxing legend Mike Tyson held one of his investment advisors in such high regard that he invited the man to his wedding.

His money manager reciprocated that friendship … by stealing more than half a million dollars from the pugilist and spending it on things like dental work, tanning sessions and expensive clothing.

Indeed, the adviser acted similarly in his professional representation of other high-profile athletes as well, directing funds received in good faith from those individuals to personal accounts and activities.

He will now go to prison for that malfeasance, with a judge scheduled to announce a sentencing outcome in early May. Although the embezzlement and attendant criminal count of wire fraud carries a maximum prison term of two decades, federal sentencing guidelines taking account of a guilty plea entered by the adviser will yield an incarceration period of less than a handful of years.

But then there's restitution that additionally factors in. Under the terms of the deal, the adviser is slated to pay back the defrauded athletes about $1 million.

Some fraud-related cases run parallel tracks through both the criminal and civil systems, with the case involving the athletes' adviser being one such matter. In addition to the penalties already levied under criminal law and those yet to be announced on the upcoming sentencing date, the adviser suffered additionally adverse consequences after being targeted by the U.S. Securities and Exchange Commission in civil fraud litigation last year.

In that matter, he was found liable for misappropriating client funds and ordered to pay back over $670,000, as well as required to pay several hundred thousand dollars as a civil penalty.

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