Mega Millions Winner Prevails In Incompetent Bank Lottery

A former Super Bowl champion, too.
Tony Webster from Minneapolis, Minnesota, United States [CC BY 2.0], via Wikimedia Commons

Tony Webster from Minneapolis, Minnesota, United States [CC BY 2.0], via Wikimedia Commons

Winning the lottery, or being really good at sports, do not endow the lucky persons so described with any special ability to manage their newfound fortunes. This has been repeatedly, endlessly demonstrated.

And has been again: Two people, $168 million Mega Millions winner James Groves and two-time Super Bowl champion Asante Samuel, who earned $57 million in 11 NFL seasons, both invested in a chain of Miami nightclubs. This chain included all of two locations, closed in 2014 and can thus be deemed a bad investment. Luckily for Groves, Samuel and the other 40 pro athletes who made the same or similar mistakes, they did so at the behest of their broker. And because this broker did a lot of bad things like recommend investments in things like Club Play while working for a couple of banks, they get their money back.

Finra’s arbitration panel said in an arbitration resolution Wednesday that Morgan Stanley Smith Barney LLC, a unit of the bank, owes $3.3 million to James Groves, who won $168 million from Mega Millions in 2009, and $879,000 to Asante Samuel, a cornerback who last played in the NFL in 2013….

Between 2009 and 2013, Parthemer engaged in outside business activities, loaned about $400,000 to customers, presented an undisclosed private securities transaction in which clients invested more than $3 million, and provided false documents to the banks and Finra, according to a filing by the regulatory authority….

Wells Fargo settled in April 2017 for an undisclosed amount.

Morgan Stanley Ordered to Pay $4.2 Million to Former Clients [WSJ]


See page for author [Public domain], via Wikimedia Commons

Regulators Unceremoniously Dump Volcker Rule Into Crude Ditch Next To Its Author

But not without delivering another, posthumous “F.U.” to the late former Fed chief.

FINRA sign

FINRA Gets Around To Banning Broker It Found Guilty Of Ripping Of Client/Adulterous Lover Three-And-A-Half Years Ago

Ami Forte will have to find other ways of getting into elderly rich guys’ pants.


John Stumpf Gives Wells Fargo $41 Million As Down Payment On His Own Job

John Stumpf's clawback is both substantial and cravenly weak.