(Bloomberg) - Jeffrey Rubin, a Florida broker, was barred from the securities industry after more than 30 National Football League players including Terrell Owens lost at least $40 million on an Alabama casino project that went bankrupt.
The Financial Industry Regulatory Authority, Wall Streets self-funded overseer, said in a statement today that one of Rubins clients put the majority of his cash into the project and lost about $3 million. Finra didnt say which players were involved. Owens, the former Dallas Cowboys wide receiver, and Jevon Kearse, the former Philadelphia Eagles defensive end nicknamed The Freak, were among those who lost money, according to their lawyers.
This case demonstrates how broker misconduct can target high-income, inexperienced, and vulnerable investors, Brad Bennett, Finras head of enforcement, said in the statement. Jeffrey Rubin took advantage of professional athletes who placed their trust in him.
Rubin, 38, agreed to the ban without admitting to Finras charges. Patricia Christiansen, Rubins lawyer in West Palm Beach, Florida, declined to comment.
Owens sued Rubin in Broward County in January, saying the broker introduced him to the failed casino project. Michael Simon, the players lawyer in Boca Raton, said Rubin didnt tell investors that the electronic bingo machines planned for the development werent allowed in Alabama.
It should have never been promoted to any NFL player or any investor, Simon said. It was illegal.
Andrew Kagan, Kearses lawyer in Fort Myers, said he has represented about 30 players who lost money on the failed project.
Jeff was getting a finders fee for putting people in it, Kagan said. The guys didnt even know how much was put in, when it was put in.