Broker Barred for Ripping Off Pro Athletes

 

The Financial Industry Regulatory Authority (FINRA) has barred broker Jeffrey Rubin of Lighthouse Point, Florida, from the securities industry for unsuitable recommendations to NFL players to invest in the securities of a now-bankrupt Alabama casino. The NFL players lost millions in the illiquid, high-risk investment.

According to FINRA, Rubin made the recommendation to at least 30 NFL players, who invested in the casino project and lost approximately $40 million.  In exchange for recommending the investments, the promoter reportedly paid Rubin a 4 percent ownership stake in the casino and $500,000.

Rubin’s Florida-based company, Pro Sports Financial, purported to provide financial “concierge” services to professional athletes for an annual fee of approximately $40,000.00.  Rubin was registered as a broker at Lincoln Financial Advisors Corporation and Alterna Capital Corporation (“Finra: Broker Barred After NFL Clients Lost Millions,” by Ben Fox Rubin, Wall Street Journal).

Rubin allegedly failed to inform or receive approval from his brokerage firm when he recommended and facilitated the sale of the securities.  This prohibited practice known as “selling away.” See https://www.pageperry.com/selling-away.

The case against Rubin demonstrates how high-income individuals, who, despite their wealth, are inexperienced and vulnerable investors, can become victims of broker misconduct.  The professional athletes trusted Rubin, and he took advantage of them.

Page Perry is an Atlanta-based law firm with over 150 years of collective experience maintaining integrity in the investment markets and protecting investor rights.