Cowboys Running Back Darren McFadden Sues Ameriprise for $15 Million
Dallas Cowboys running back Darren McFadden is doubling down on fraud claims tied to his former financial advisor with a lawsuit against Ameriprise Financial, according to a complaint filed Friday in federal court in Arkansas.
McFadden, who sued his former advisor, Michael E. Vick, last June for misappropriating $15 million from 2008 until last year is now suing Ameriprise itself for a similar amount. He alleges that the firm was negligent in supervising Vick and in failing to notify McFadden of the advisor’s compliance issues, according to the claim.
“Ameriprise Financial had the opportunity at certain points in time to intervene and stop his pervasive misappropriation, but opted to say and do nothing,” the complaint says.
McFadden, who was drafted by the Oakland Raiders in 2008 with a $60 million contract, said he brought the case against Ameriprise after reviewing evidence produced during discovery in the first case that detailed the firm’s suspension and investigation of McFadden. The case against Vick is scheduled for trial next year.
Ameriprise began investigating Vick in January 2010 regarding suspicious and unauthorized trades in McFadden’s account but never notified the client of the investigations, the new suit alleges. Ameriprise also did not alert him or regulators to the fact that it formally suspended Vick in October 2010, allowing Vick to successfully persuade McFadden to follow him to a new firm and to continue to misappropriate funds, according to the complaint.
“Vick induced McFadden to transfer his accounts from Ameriprise Financial to other financial institutions by claiming that other institutions offered wider range of investment vehicles at potentially lower costs,” the lawsuit says.
It also characterizes the power-of-attorney authorization Ameriprise permitted Vick to use to to gain authority over McFadden’s accounts when he began working with the athlete in 2008 as being among “the broadest and most sweeping” in the securities industry.
Vick, who is not related to the NFL quarterback with the same name and has denied wrongdoing, according to reports, allegedly withdrew a total of $15 million over eight years at Ameriprise and other financial companies for various outside investments including in the digital currency Bitcoin and a commercial building, according to the first lawsuit filed in June.
A spokeswoman for Ameriprise said that it could not comment because it had not yet received a copy of the complaint.