SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16455 / February 25, 2000
Securities and Exchange Commission v. William H. Black (a.k.a. Tank Black), James A. Franklin, Jr., Professional Management, Inc., Professional Management Consulting, Inc., and Silverline Development Corporation, LLC, No. 8:00CV383-T-26B (M.D. Fla.)
SEC OBTAINS ASSET FREEZE AND RESTRAINING ORDER AGAINST PROMINENT SPORTS AGENT; ALLEGES THAT ATHLETES WERE DEFRAUDED OF MILLIONS IN A SERIES OF INVESTMENT SCAMS, INCLUDING A CAYMAN ISLANDS-BASED PONZI SCHEME
The Securities and Exchange Commission ("Commission") today announced that on February 24, 2000 it filed a civil action in federal court in Tampa, Florida arising from a series of frauds perpetrated on professional athletes by their agent, his business partner and the entities that they control. The Commission requested and obtained a temporary restraining order that, among other things, freezes the Defendants' assets and requires them to account for proceeds of the alleged fraud.
Named in the Commission's Complaint are:
JAMES A. FRANKLIN, JR. ("Franklin"), age 32, of Columbia, South Carolina, the General Counsel for PMI and Executive Vice President and Chief Operating Officer of co-defendant PMC. Franklin holds both a law and an MBA degree.
PROFESSIONAL MANAGEMENT, INC. ("PMI"), a Columbia, South Carolina sports management firm, owned by Black, that represents professional athletes in the National Football League and the National Basketball Association in contract negotiations with their respective teams.
PROFESSIONAL MANAGEMENT CONSULTING, INC. ("PMC"), a PMI affiliate that is co-owned by Black and Franklin and purportedly was established to provide legal and business consulting services to PMI clients.
The Complaint makes the following allegations:
In its Order, the United States District Court for the Middle District of Florida, Tampa Division: froze the accounts of Black, Franklin, PMI, PMC and Silverline; restrained Defendants and their employees from exercising any control over their clients' depository accounts (without freezing the client-athletes' accounts); directed Defendants to provide an accounting and to repatriate all assets held offshore, including assets held in the Cayman Islands; granted the Commission's request for expedited discovery and restrained Defendants from violations of the antifraud and broker-dealer registration provisions of the federal securities laws.