The Securities and Exchange Commission has taken the next step in a case against a California investment manager accused of bilking pro-athletes out of millions of dollars by barring him from the financial industry, the agency announced.
Ash Narayan, of Newport Coast and Irvine, Calif., is accused of diverting $33 million from professional athletes including Mark Sanchez, a former New York Jets quarterback who is now with the Dallas Cowboys. Other victims of his scheme included San Francisco Giants pitcher Jake Peavy, and Roy Oswalt, a retired pitcher who starred with the Houston Astros and other teams.
Narayan’s assets have been frozen and he has been stripped of his right to use the certified financial planner designation because of the SEC charges.
He gained the trust of the athletes through his Christian religion and by playing on the athletes’ interests in charity, the SEC says. He put the money into a struggling online sports ticketing business, the Ticket Reserve, but failed to disclose he was on the board of directors, held stock in the company and was its chief fundraiser, the SEC says.
Narayan has agreed to the ban but denied the SEC charges. He is charged with defrauding investors, misappropriating client funds, misrepresenting his professional qualifications and failing to meet his fiduciary obligations.