Former baseball pitcher Dennis Neagle and his former wife, Jennifer, have filed suit against a financial advisor who they considered a friend, claiming he tied up nearly all of their assets in non-liquid, risky investments without their knowledge.
The Neagles are suing William S. Leavitt, a CFP and an attorney, and Leavitt Capital Management Inc., in Northbrook, Ill., a suburb of Chicago. They are represented by Eric N. Macey of Novack and Macey LLP in Chicago.
Leavitt, of Glencoe, Ill., took advantage of the Neagles' lack of knowledge about finances and financial inexperience as his baseball career took off in the 1990s and the couple accumulated a large amount of wealth, according to the lawsuit.
The suit alleges Leavitt, without the Neagles' knowledge, put their money in hedge funds, private equity funds and other unregulated investments that were highly risky, illiquid and laden with fees. Neagle asked that his investments be placedin conservative and liquid investments, such as stocks, bonds and mutual funds, according to court papers.
The suit also claims Neagle paid taxes on income that did not exist, incurred huge losses in alternative investments and now cannot access most of his portfolio. Both Neagles live in Colorado.
The suit, filed in Cook County (Illinois) Circuit Court, claims breach of fiduciary duty, negligent misrepresentation and unjust enrichment. It does not name an amount of money involved but seeks a jury trial and damages.
Neagle began playing in major league baseball in 1991 and played for several teams before retiring from the Tampa Bay Devil Rays in 2005. Leavitt did not return telephone calls for comment.