A Pittsburgh financial advisor defrauded professional athletes to finance two movie projects, the Securities and Exchange Commission charged Friday.
The SEC did not identify the athletes who were victims when it filed fraud charges against Louis Martin Blazer III in federal court in Manhattan, N.Y.
Blazer took his clients money without permission and used some of it for two movies to be titled “Mafia the Movie” and “Sibling.” He also used money from one client to pay another client who demanded his money back, the SEC said.
SEC examiners uncovered the unauthorized withdrawals and asked Blazer to explain the transactions, but he lied and produced false deal documents that he created after the fact in a failed attempt to hide his misconduct, the complaint says
Blazer is the founder of Blazer Capital Management, a concierge firm targeting professional athletes and other high-net-worth individuals as clients. He took approximately $2.35 million from five clients, the complaint says.
“We allege that Blazer grossly abused the trust placed in him by his clients and repeatedly took their money without authorization. And when our examiners put him on the spot, he resorted to false statements and false documents,” says Andrew M. Calamari, director of the SEC’s New York Regional Office.
Blazer has agreed to settle the SEC charges without admitting or denying the allegations. Disgorgement of ill gotten gains and penalties will be set by the court at a later date.