June 22, 2016 - Aaron Wilson
Broncos QB Mark Sanchez cheated out of at least $7 million by financial advisor
Denver Broncos quarterback Mark Sanchez and other professional athletes were cheated out of millions of dollars by a financial advisor named Ash Narayan, according to the Securities and Exchange commission. Sanchez was cheated out of at least $7 million, according to the lawsuit in a Dallas federal court. Sanchez, San Francisco Giants pitcher Jake Peavy and former Rockies pitcher Roy Oswalt were defrauded out of about $30 million. Narayan concealed multiple conflicts of interest from investors, the SEC said in its lawsuit against him. He directed the athletes’ cash to The Ticket Reserve Inc., which allows fans to reserve face-value tickets to sporting events where the teams have yet to be determined, the SEC said. He was on the company’s board of directors, owned more than 3 million shares and was its primary fundraiser — raising more than 90 percent of the company’s investment capital, the agency said. All three athletes sought low-risk, conservative investment strategies, the SEC said. Narayan ignored their requests and instead invested in TTR even as the company’s financial conditions were in distress. TTR’s chief executive officer wrote to Narayan in a May 2014 e-mail: “To be sure, our revenue sucks. Our balance sheet is a disaster.” Sanchez, who’s set to be the starting quarterback for the Denver Broncos this year, met Narayan soon after entering the National Football League in 2009, he said in a court filing. The two attended the same church in California, and Sanchez said he believed the adviser was a devout Christian and highly qualified. The quarterback had his NFL paychecks deposited directly into a brokerage account. In mid-2011, Sanchez agreed to make a $100,000 investment in TTR. Instead, Narayan forged documents and directed more than $7 million of Sanchez’s money to the ticket company, the SEC said. In total, Narayan transferred more than $33 million from all investors to TTR, earning almost $2 million in hidden compensation. The vast majority of Peavy’s personal wealth, about $15 million, was invested in the ticket company without his authorization, he said. The NFL Players Association immediately and indefinitely suspended Narayan,. Follow me on Twitter: @AaronWilson_NFL Aaron Wilson covers the Texans for The Houston Chronicle.