Ash Narayan, an investment manager from Irvine, Calif., who is accused by the Securities and Exchange Commission of defrauding professional athletes out of $33 million, has been temporarily stripped of his right to use the Certified Financial Planner designation, the CFP Board of Standards Inc. announced Monday.
In June, the SEC obtained a court order freezing Narayan’s assets pending further investigation based on the commission’s complaint that he siphoned millions of dollars from accounts he managed for professional athletes and invested the money in a struggling online sports ticketing business, The Ticket Reserve. Among other things, he failed to disclose he was on the board of directors for the sports company, held stock in the company and was its chief fundraiser, the SEC says.
NFL player Mark Sanchez, a former Jets quarterback who is now signed with the Dallas Cowboys; San Francisco Giants pitcher Jake Peavy; and Roy Oswalt, a retired pitcher who starred with the Houston Astros and other teams, were among those defrauded in the alleged scheme, according to the SEC.
The SEC suit charges Narayan with defrauding investors, misappropriating client funds, misrepresenting his professional qualifications and failing to meet his fiduciary obligations. He appealed to the players using his Christian background and his interests in charity.
In the wake of the SEC charges, the CFP Board has imposed an interim suspension of Narayan’s right to use the CFP mark, pending further investigation. Among the SEC charges are that Narayan put investors in unsuitable investments and sometimes made investments without their knowledge.
Narayan has denied the SEC charges.