On May the 6th of 2016, the Securities and Exchange Commission filed fraud charges against a Pittsburgh, Pennsylvania financial adviser. Louis Martin Blazer III was accused of taking money from the accounts of several professional athletes, without their permission. Blazer was accused of using the money to fund movie projects and fulfill Ponzi-like payments.
When SEC examiners discovered the unauthorized withdrawals, they were brought to Blazer’s attention. He is accused of lying and producing false documents in an attempt to cover up his misconduct. The SEC accused Blazer, who founded Blazer Capital Management, of taking approximately $2.35 million from five clients without their permission.
Subsequently, Blazer used the money to invest in two movie projects, “Mafia the Movie” and “Sibling”. In one case, Blazer was accused of pitching the movie project to an athlete only to have the offer rejected. Nevertheless, Blazer allegedly took $550,000 from the client’s account to invest in the film projects anyway. At the time, Blazer agreed to settle the charges, without denying or admitting to the allegations.
On August the 10th of 2017, The SEC announced that it had obtained a final judgment against Blazer. The final judgment was entered by consent on August the 4th of this year. It was entered by Honorable J. Paul Oetken of the U.S. District Court of the Southern District of New York. The judgment permanently enjoins Louis Martin Blazer III from the accused violations.
The court has ordered Blazer to pay $1.8 million in disgorgement and prejudgment interest. He will also be required to pay a civil money penalty of $150,000. On May 18, 2016, Blazer agreed to the entry of an SEC order imposing a permanent industry bar. According to the official website for Blazer Capital Management, Mr. Blazer has focused on the unique needs and requirements of athletes and entertainers.