Roy Oswalt lost $7 million to a Ponzi Scheme

I sincerely hope that this was just money that they were playing around with and they saved/invested some of their career earnings. With that much money (Oswalt made $100m, Peavy $120m, Sanchez $70m over their careers), you could park it in some pretty low risk mutual funds and still make out very well.

 

I sincerely think the death penalty should be on the table for these kind of white collar crimes, or at least life without parole.

Not so much because of these 3, they will be fine, but these guys literally ruin lives when it happens to common folk. People who put in hard, honest work their whole life, wiped out by one crook.

 

I've always wondered why people with that kind of money felt the need to invest so much like they do

100 Million Dollars, broken down for 30 years, is over 9 grand PER DAY

Of course I've never had that kind of money so maybe I just don't understand why you would feel the need to have even more

Having said that, the crooks who did this should never see the free world again

 

Many ex-wives fit that description :grin:

There should be tougher penalties and less rights for criminals in general. Someone caught in the act of stealing should be eligible for a good beatdown.

Hope Roy is still doing well. He did the Astros proud.

 

Shame. That is a lot of money. People at the highest level of life are often too busy to follow their money trail, as they are busy making money, so it happens.

It doesn't sound like a Ponzi scheme in the way that I know it. It just sounds like straight up theft. As in nobody was going to be paid back as an early investor other than the thieves themselves.

Who ends up being held responsible if the firm turned in the criminal? Does the firm take a hit insurance or otherwise? Or is this completely on the advisor and his cohorts?

funny that they had to mention the criminals are in Chicago.

I really do not trust financial advisors, which is why if I won the lottery, I would not send one to go pick up my money and deposit it. you really don't know who they are and what credentials they have even with total investigation.

 

Jon Oliver did a good piece on "financial advisors". I'm sure it's on YouTube somewhere. Worth a watch.

 

If all you are worried about is yourself, then most folks wouldn't need to make more, but if you want to leave a lasting legacy to your family and heirs and charity, then investments are necessary.

 

7 million dollars is a ton of money:

Oswalt, a former All-Star pitcher for the Houston Astros and Texas Rangers, lost $7 million in the alleged scheme, lawyers involved in the case said.

 

That's like saying you paid $30,000 for a car wash because you paid $20 bucks to the guy at the counter, left your keys with him and he stole your car.

 

The time value of money, my friend.

A dollar today is worth more than a dollar tomorrow so you invest to sustain your wealth and set yourself up for retirement......theoretically.

http://www.investopedia.com/terms/t/timevalueofmoney.asp

 

Oswalt is out $7 million actual dollars of his own money according to the article.

 

To clarify - that's because the financial advisor forged documents and took money that Oswalt didn't authorize. Syd was saying that it wasn't that these athletes were saying "yeah, invest $7MM into this company". In Sanchez' case, he said to invest $100k. The advisor committed fraud and took out $7MM from his account.

The only relevance was that it wasn't these guys being conned into agreeing to a $7MM bad investmnent. It was them agreeing to a small amount, and the advisor then just stealing the money out of their account.

 

I see.....thanks for the explanation (sorry Sydeffect)

 

I put a few bucks down on the Mega Millions on Tuesday. I was thinking, I could set aside $50M of it in 100% backed low interest savings. Even at 1.2% you're pulling in $600,000 a year. That's $600 grand a year after you buy your house(s) cars, pay off all your debt, buy yourself a boat and travel the world for 6 months staying at top of the line hotels every night and doing anything you've ever wanted. Even after all that, the puny interest alone puts you in the top half of 1% of Americans. Like you, I've never had that kind of money, just not sure the desire to have $108M instead of $103M you already have.

 

I'd do two chicks at the same time.

 

NSFW:

http://massage-service.wix.com/paris

Only $79.99 for 2 girls...

 

100,000,000 would take care of my family

You are right about the "legacy" part, personally i don't want finances to have anything to do with how I am remembered though