SEC says Peavy, Sanchez among athletes defrauded in scheme

According to a recently unsealed U.S. Securities and Exchange Commission lawsuit in Dallas federal court, Peavy, along with former major league pitcher Roy Oswalt and Jets quarterback Mark Sanchez, were defrauded out of $30 million.

Narayan concealed multiple conflicts of interest from investors, the SEC said in its lawsuit against him.

Instead of directing their earnings into low-risk investments, Narayan allegedly put the money into The Ticket Reserve, Inc., a struggling website created to allow fans to reserve face value tickets to sporting events.

The SEC’s complaint alleges that Narayan transferred more than $33 million from clients’ accounts to The Ticket Reserve, typically without their knowledge or consent and often using forged or unauthorized signatures.

Before it’s here, it’s on the Bloomberg Terminal. The SEC filed a lawsuit against Narayan last month, though he has not yet been charged criminally.

Narayan’s attorneys didn’t immediately return a phone message seeking comment. Peavy had never heard of The Ticket Reserve until Oswalt called him in February to tell him that Narayan was sacked.

Narayan’s clients trusted and relied upon Narayan to pursue safe, conservative investments that would not put their principal at risk, realizing that as professional athletes with injury risks, their earnings might occur within a short window.

Federal investigators say Sanchez, who was traded by the Eagles to the Denver Broncos in March, and Giants pitcher Jake Peavy were among those cheated by Ash Narayan. “He fraudulently funneled their savings into a money-losing business and his own pocket”, said Shamoil T. Shipchandler, director of the SEC’s regional office in Fort Worth, Texas.

The two attended the same church in California, and Sanchez said he believed the adviser was a devout Christian and highly qualified.

In total, Narayan transferred more than $33 million from all investors to TTR, earning nearly $2 million in hidden compensation.

RGT said it had discovered earlier this year that Narayan had “directed a small number of clients to make investments that were not consistent with RGT’s policies and procedures or the clients’ investment goals”.

Peavy said Narayan promised to repay him all his investments in March, but Peavy has yet to see any money.

“Between 2011 and 2016, Narayan invested approximately $15 million of my funds in (the ticket business) without my authorization”.