|By Donna Gehrke-White, Sun Sentinel|
|McClatchy-Tribune Information Services|
In an instant, Rutledge knew he could no longer trust
But he didn't stay quiet about Rubin, a friend from his days at the
"They wouldn't listen," he said.
Now, eight years later, FINRA has barred Rubin from the securities industry after 31 NFL players lost about
Rutledge knows many of the current and former players who have lost a lot of money — including
Taylor, who now lives in southwest Broward, wouldn't talk to a
Neither Rubin nor his West Palm Beach attorney,
Rubin also has faces civil court cases. Boca Raton attorney
Rutledge, who is now working as the athletic director for
"I learned the hard way coming out of college," said Rutledge, 36. He said he had to fire a financial adviser after making a bad real estate investment. Then, he parted ways with Rubin.
"I was just lucky I didn't get pulled into the traps that catch other players," he added.
It's not uncommon for NFL players to hand over all their non-football activities to agents or advisers. They will pay their bills, make flight arrangements, and hire domestic workers to clean homes and pools, said Pembroke Pines financial adviser
"There's a culture in the NFL with players saying, 'My people do that.' The mindset is to play ball and to do just that," Pettus said.
But ceding that much control over finances can lead to problems, Pettus said.
"You have to have checks and balances," he said. He teaches his athlete-clients, for example, to demand receipts and invoices.
A Sports Illustrated story found that most NFL players either face financial hardships or go bankrupt within two years after retirement. The article blamed bad investments and people taking advantage of players who aren't paying attention to their finances.
But Rutledge said many athletes also go overboard in spending.
"You don't see at 22 that you'll only be in the NFL on average three years," he said.
"Your advice has created a situation in which millions of dollars are unaccounted for and inaccessible," Rolle wrote in a complaint directed at Rubin.
Rolle had directed Rubin to seek investments with "moderate" risk to build a nest egg "so that he would not have to work upon retirement," according to FINRA records.
Instead, Rubin made "unsuitable recommendations" to Rolle to invest most of his available money in "illiquid, high-risk securities," the records show.
Rolle ultimately lost about
In another FINRA complaint, a Rubin client who was not named alleged that Rubin had disobeyed his investment orders. Rubin "invested the client's money in private placement entities rather than deposit the monies in a variable universal life insurance policy, according to FINRA records.
According to FINRA records, Rubin was being paid as a consultant by the casino sponsors — beginning in
Rubin was later CEO of
Now Rutledge thinks he was lucky to get burned early.
"That kind of forced me to learn," he said.
Rutledge said he began studying stocks and bonds. He invested safely in mutual funds. It also caused him to actually read over the financial file that Rubin kept for him.
"I was just doing my due diligence," he said of the 2004 issues.
"That's pretty sad," about the bankrupt casino and the money all the current investors lost, Rutlege added. "I wish these guys would wake up and just learn how to manage money."
email@example.com or Twitter @donnagehrke.
(c)2013 the Sun Sentinel (Fort Lauderdale, Fla.)
Visit the Sun Sentinel (Fort Lauderdale, Fla.) at www.sun-sentinel.com
Distributed by MCT Information Services