Floyd Mayweather, currently incarcerated, has sued his financial advisor, Jeff Rubin, and Pro Sports Financial, Inc., to recover more than $4 million blown on a real estate/casino that Mayweather says was recommended by Rubin. The lawsuit was brought in the Miami-Dade Circuit Court in Florida.
Mayweather apparently loaned $4 million to develop the gambling resort in Alabama, after Rubin allegedly told him the investment involved very little risk. Mayweather lost his entire $4 million investment in the business deal.
Floyd Mayweather claims that Jeff Rubin and Pro Sports Financial knew that the investment was a bad deal and that it was “doomed” from the start because of Alabama rules/regulations governing certain kinds of gambling.
Financial advisors owe their clients duties of care, which are generally to avoid self-dealing, avoid conflicts of interest, and act in the best interests of their clients, who trust them to provide sound financial advice. Financial advisors who violate these principals can be sued for breach of “fiduciary” duties. Financial advisors generally cannot be held liable, however, for changes in the value of investments due to market conditions.
This is another sad story for Mayweather, who says he lost his entire $4 million investment. That is an awful lot of money to have simply vanished. It is not clear how the money was spent, exactly, but if any of the defendants attempt to hide or conceal assests so as to make themselves appear “judgment-proof,” they would be at risk of also being sued for making fraudulent transfers of assets.
If you have been defrauded, mislead, or deceived by a financial advisor, click here to request a confidential legal consultation and assessment of your rights.