New York Yankees outfielders Johnny Damon and Xavier Nady may be millionaires, but they're struggling to pay bills because their bank accounts and credit cards have been frozen. They're among the investors who have money with a company affiliated with R. Allen Stanford, the financier under being sued by regulators for allegedly committing fraud.
The pinstriped pair join New York Mets owner Fred Wilpon and Brooklyn Dodgers legend Sandy Koufax among those in the Big Apple baseball community hurt by recent financial scandals. Wilpon and Koufax were among the investors who gave money to Bernard Madoff, the fund manager who allegedly ran a $50 billion Ponzi scheme.
Damon and Nady are both represented by super-agent Scott Boras, who said his firm is monitoring the situation, the Associated Press reported. Neither player invested directly with Stanford or his companies, but instead gave their money to brokers with accounts at firms affiliated with him, Boras said.
Damon will make $13 million playing for the Yankees this year; Nady will earn $6.55 million. Still, having a lot of money doesn't do much good when it's in a frozen bank account. Damon hasn't been able to access his funds since Tuesday, Fox Sports columnist Ken Rosenthal wrote today. Nady's credit cards are frozen, according to Rosenthal.
"I hope we're all safe," Rosenthal quoted Nady as saying. "You're concerned because of things that have happened these last few months."
Small Cap Investing
Learn now to invest in small companies the right way.View Course »