CBS News recently reported that dozens of NFL players have lost millions after investing in Country Crossing, an Alabama casino. Those involved include six-time pro bowler Terrell Owens, and Washington Redskins’ tight end, Vernon Davis.
What happened?
Back in the early 2000s, these players were convinced that the investment would allow them to maintain their luxurious lifestyles after retiring from the game. However, this particular establishment proved to be just the reverse of the many offline or online casinos like Royal Vegas bringing so much wealth to investors.
After opening its doors to the public in 2009, many expected the casino to generate $100 million per year in gross revenue. The future success of the gaming complex relied heavily on its 1700 electronic bingo machines.
Yet when state governor Bob Riley set up an anti-gambling task force, officials raided Country Crossing two weeks later. Alabama Attorney General Troy King declared that the electronic bingo machines were against state law, and its Supreme Court agreed. The multi-million dollar casino is now out of business.
Who’s to blame?
The man at the centre of the controversy is Jeff Rubin, a financial adviser listed on the NFL Players Association (NFLPA) directory. Around the turn of the century, Rubin convinced a group of 35 players to invest in the ill-fated gaming complex. These players say that Rubin did not inform them of the risks involved.
Gaming laws in Alabama have always been strict. With this in mind, the claim is that the players and other Country Crossing investors are victims of deception. According to reports, Rubin is still living in a $2.8 million home on a river near Fort Lauderdale, Florida. He’s also still driving a luxury Mercedes 550 saloon. According to financial documents, the once popular financial adviser made millions from his clients’ investments in the casino.
Players also feel that the NFLPA union does not do enough to protect them from dishonest financial advisers. The Association publishes a list of approved financial advisers, which most players use to find experts to look after their money.
An adviser must pay $2500 to have a listing published in the NFLPA directory. However, the Association does not perform background checks. This therefore provides no assurance of an adviser’s expertise, financial performance, or reliability.
Should the players have been more careful?
These players allegedly “ignored several red flags” relating to Rubin’s behavior. In 2003, former NFL linebacker and Rubin client Barrett Green hired a private investigator to look at the adviser’s dealings after the player found a discrepancy in his finances.
A year later, Rubin was the subject of a legal complaint by another former NFL linebacker, Johnny Rutledge. The former Broncos and Cardinals player claimed that his signature was forged on insurance documents that cost him $40,000. Rubin settled the case without admitting or denying his alleged guilt. Rutledge says he warned other players about Rubin.
What is Rubin’s defense?
When questioned on CBS’ 60 Minutes, Rubin said he “had no idea” about the risks involved in the casino and that he wishes he’d “never set foot in Alabama”. The financial advisor also concedes that it was an “awful” move on his part and that he was negligent, rather than deceptive in his advice to players.
