Pro Athletes Among Investment Advisor’s Victims
$12.5 million case involves MBS
November 5, 2001
By MortgageDaily.com staff
Federal securities regulators have sued Donald Lukens, an investment adviser catering to professional athletes and other wealthy clients, for allegedly defrauding more than 100 investors of at least $12.5 million in a series of schemes in the late 1990s, according to a story by the Associated Press (AP). The SEC also reportedly sued James Carter Allison, who, at Lukens’ direction, made transactions through two shell companies, J.C. Inc. and Select Assets, that aided Lukens’ diversion of clients’ money, the SEC alleged.
AP said that Lukens allegedly cheated investors in four schemes involving mortgage-backed securities in California and Nevada, including hotel, condominium and residential timeshare developments. Lukens secretly enriched himself with undisclosed commissions and fees, and diverted millions that his clients entrusted to him to invest in the securities, the SEC reportedly said in its complaint.
AP went on to say that Lukens’ victims include:
- Simeon Rice of the Tampa Bay Buccaneers
- Sean Gilbert of the Carolina Panthers.
- Kurt Thomas of the New York Knicks
- Bryon Russell of the Utah Jazz
- former boxing champion Terry Norris
