This article from Financial Planning caught my eye:
NFL quarterback Mark Sanchez and major league baseball pitchers Jake Peavy and Roy Oswalt were allegedly cheated out of about $33 million by Ash Narayan, who worked for RGT Capital Management for nearly 20 years, the SEC has charged.
Narayan “secretly siphon[ed] millions of dollars from accounts he managed for professional athletes,” the SEC alleged.
When you hire someone to manage your money you trust that they will serve you honestly and ethically. Unfortunately, that trust is sometimes betrayed, which gives the financial services industry a black eye.
One of the things that we can pass along to our friends and clients are lessons learned. In this particular case, Narayan put a lot of his clients’ money into a struggling internet firm in which he had a financial stake. That is a huge conflict of interest and should be a red flag for anyone who hires a financial advisor.
Sanchez hired Narayan partly because they attended the same church. We have seen several instances where people entrusted their money with advisors who were part of the church, the club or another affinity group without checking further. When hiring an advisor you cannot assume that people close to you have your best interest at heart. Even family members will take advantage of other members of the family.
If you want a brochure that tells you how to choose a financial advisor, contact us. We are fiduciaries.