HOUSTON (CN) – NFL quarterback Vince Young claims in court that his former financial adviser took $5.5 million from him while controlling his finances, with help from Young’s agent.
Young, a Heisman trophy finalist and Rose Bowl winner at the University of Texas, was drafted by the Tennessee Titans with the third pick in the 2006 NFL draft.
In his complaint in Harris County Court, Young says he signed a management services agreement with defendants Ronnie Peoples and his Raleigh, N.C.-based firm Peoples Financial Services in January 2006.
“Pursuant to the MSA, defendants Peoples and PFS specifically agreed to provide Young with financial planning, credit management, investment counseling, estate planning and bill paying, among other services,” the complaint states. “In exchange for these services, Young agreed to pay Peoples and PFS and flat yearly fee of $65,000.”
Young says he also agreed to reimburse Peoples and PFS for all expenses they racked up working for him.
“PFS established several accounts in Young’s name through which transactions were conducted,” the complaint states. “In 2011, Young transferred management of his assets to a new firm.
“Upon review of six (6) years’ worth of Young’s bank statements, significant transfers between Young’s accounts and accounts owned by PFS were noted, as well as evidence of commingling Young’s funds with PFS-owned accounts.”
Young says his investigation found a “net transfer discrepancy” of $7.8 million, meaning PFS took in $7.8 million more than it transferred to his accounts.
Young claims Peoples impersonated him via email to get a $700,000 loan, and forged his signature on a “Deposit Account Control Agreement.”
After doing the math, the quarterback says, he found himself “in the unenviable position of losing no less than $5.5 million while his assets were under PFS’ control.”
Young, a Houston native, claims that the third and final defendant, Houston attorney Major Adams II, was his agent during the time Peoples managed his finances.
According to the complaint: “Adams secured loans or lines of credit in an amount between $200,000 and $500,000 by impersonating Young via phone and/or e-mail and/or by forging Young’s signature. These loans were obtained in order to pay off or service Adams’ personal debts. … When these transactions began to come to light, Young immediately terminated his relationship with Adams.
“Young also believes that Peoples and PFS repaid some of Adams’ unauthorized debts by using Young’s funds without his knowledge. It is Young’s belief that Peoples and Adams came to an agreement on this course of action, and this type of behavior on the part of all defendants accounts for some of the net transfer discrepancy.”
Adams told The Associated Press and Houston Chronicle that he had nothing to do with Young’s finances.
“I have never had access to Vince Young’s financial money, any money he has,” Adams told the AP on Tuesday. “I’ve never had any access to his financial accounts. I’ve never been authorized on any accounts to write checks or anything like that. All I did for Vince Young was negotiate his contracts.”
Adams told the Chronicle that Young did not mention a lawsuit when they talked a month or two ago.
“We’ll fight this lawsuit vigorously in court and also will file a counterclaim of defamation,” Adams told the Chronicle.
Young seeks damages for conspiracy to commit fraud, fraud, conversion, breach of fiduciary duty, negligence, usury, theft, breach of contract and unjust enrichment. He also wants an accounting of PFS’ corporate books during the time it managed his finances.
Young signed a one-year contract worth a potential $3 million with Buffalo last month, where he will vie for a backup quarterback job.
He is represented by Trey Dolezal with Kasling, Hemphill, Dolezal & Atwell, of Austin.