Mt. PLEASANT, SC, June 23, 2006 - Motley Rice LLC, one of the nation's largest all plaintiffs litigation firms, today announced that it has filed suit against the National Football League (NFL) and the NFL Players Association for its endorsement and recommendation of the financial advisory services of Kirk Wright and his firm, International Management Associates (IMA). The suit, filed in United States District Court, Northern District of Georgia, is on behalf of several current and former NFL football players, including NFL Pro-Bowl players Steve Atwater and Blaine Bishop, who utilized the NFL's security department services and the NFL Players Association's Registered Financial Advisor Program.
According to the complaint, plaintiffs invested a total of approximately $20 million in hedge funds managed and controlled by Mr. Wright and IMA after relying on the NFL and the Players Association to conduct due diligence background checks on Wright and IMA. Plaintiffs also relied on the fact that Wright and one of his partners, Nelson Bond, were Registered Financial Advisors in the Program, which was created by the Players Association expressly to protect players from fraudsters. Last month, Wright was apprehended by the FBI, poolside at the Ritz-Carlton hotel in Miami, and arrested for criminal mail fraud. Mr. Wright's investors invested between $115 - $185 million in IMA's hedge funds since its inception in 1996. According to the Wall St. Journal, authorities and creditors have located less than $200,000 of these investments.
"We trusted the NFL and the Players Association to protect us from these kinds of people. This is exactly why the Program was created in the first place," said Plaintiff Blaine Bishop, a former NFL Pro-Bowl player. "The fact that the NFL and the Players Association cleared guys like Kirk Wright and Nelson Bond is outrageous."
Unbeknownst to the plaintiffs at the time of their investments, neither Wright nor Bond should have been approved for registration in the Program, according to the Program's own guidelines. Prior to registration, Wright and Bond had state and federal tax liens and judgments imposed on them - red flags that should have precluded them from admittance into the Program. Furthermore, it is alleged that Wright did not have the appropriate professional liability insurance coverage required by the Program. Instead, the Players Association accepted Wright's personal life insurance policy. In clearing Wright, Bond and IMA, and approving Wright's and Bond's registration applications, it is alleged that Defendants' breached their duties to plaintiffs and are therefore liable for plaintiffs' losses.
"The Program, the NFL and the Players Association failed us and we've lost millions. We want to fix the Program and make sure this never happens again." said Steve Atwater.
Plaintiffs plan to hold a formal press conference during the week of June 26, 2006.
Motley Rice LLC is working on this case together with New York co-counsel M. Quentin Williams, Esq. Williams is a former FBI Agent, federal prosecutor and legal & business executive with the NFL, NBA and Jacksonville Jaguars. Presently, he is a New York sports and entertainment attorney and business strategist.
