Yankee outfielders caught in Stanford mess

February 20, 2009 9:43:13 PM PST
Yankees outfielders Johnny Damon and Xavier Nady are among the investors whose accounts were caught in a freeze by the government of a company affiliated with Robert Allen Stanford. The pair did not invest directly with Stanford funds but rather have investments with broker dealers whose accounts were with a Stanford company, Scott Boras, the agent for the pair, said Friday. Boras said the personal management wing of his company was monitoring the situation.

"The broker dealers the players have chosen have advised our personal management auditors the players are not in jeopardy of losing money," Boras said. "I understand government agencies are trying to protect the investor. Hopefully, the agencies will distinguish between those investors who are actually invested in Stanford products from investors whose broker dealers used Stanford as a clearing house and are not affected by the potential claims levied by the government.

"I trust government agencies will take quick steps to narrow the affected investor class and restore account access to all others."

The Securities and Exchange Commission this week froze the assets of Stanford International Bank, Stanford Capital Management and Stanford Group Co.

"I can't pay bills right now," Damon was quoted as saying by foxsports.com. "That started on Tuesday. I had to pay a trainer for working out during the offseason. I told him, 'Just hold on for a little bit and hopefully all this stuff gets resolved."'

"I didn't have money with Stanford, but all my credit card accounts are frozen right now because of that situation," Nady was quoted as saying by foxsports.com. "I'm trying to get an apartment in New York. I can't put a credit card down to hold it."

Boras said that broker-dealers were chosen by the players independently and were not connected to Boras' company.


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