Atlanta – Seven current and former NFL players have sued the league and its union to recover $20 million they lost in an alleged fraud scheme, claiming the union endorsed the services of an investment firm even though its manager had liens against him.
In a lawsuit filed Friday in U.S. District Court, the players said the league and the NFL Players Association are liable for the losses because of investments with hedge-fund manager Kirk Wright.
The suit says the union recommended Wright through registration in a union investment program even though Wright and his partner, Nelson “Keith” Bond, had state and federal tax liens against them.
The players also say the union failed to certify that Wright was properly insured as required by the program, and failed to notify the plaintiffs about those matters.
NFL spokesman Greg Aiello said Tuesday the league regards the lawsuit as unfounded and without merit.
Among the clients deceived by Wright are former Denver Broncos players Steve Atwater and Ray Crockett, as well as former Philadelphia Eagles Blaine Bishop and Clyde Simmons.
The four are plaintiffs in the lawsuit against the NFL and its players union, along with Marco Coleman, who has played with six teams including the Broncos; former Houston Oiler Al Smith; and Carlos Emmons of the New York Giants.
According to authorities, Wright and his company collected as much as $185 million from at least 500 investors beginning in 1997 and misled some of them to believe the value of those investments was increasing using false statements and documents.
