Athletes among those who lost money in Stanford collapse

Former and current Major League Baseball stars Greg Maddux, Bernie Williams and Johnny Damon are just a few of the athletes who are likely keeping an eye on the federal trial of R. Allen Stanford in Houston, ESPN.com reports. That’s because they’re all among the thousands of investors whose assets were tied up in the fall of Stanford’s financial empire. Stanford is accused of leading a $7 billion Ponzi scheme. Authorities say he used investors’ funds to support a lavish lifestyle and personal pet projects, including the sponsorship of several high-profile cricket matches. Among his many celebrity friends, Stanford was tight with PGA golfer Vijay Singh—who offered to post Stanford’s $500,000 bond when he was indicted in 2009, but was unable to because he’s not a U.S. citizen. Receivers, acting on behalf of Stanford’s creditors, started legal action last year against IMG Worldwide—which represents Singh—to recoup roughly $10.5 million in sponsorship fees and advertisements that they say Stanford paid for with revenue from fraudulent certificates of deposit. The receivers also are pursuing $1.3 million paid to the Miami Heat, $5.1 million to the ATP Tour, $6.4 million to the University of Miami, $4.5 million to Texas A&M and $12.9 million to the PGA Tour, among other sports-related entities. You can see legal documents pertaining to those efforts here. Until the case is resolved, it remains unclear who will end up owing money and who will end up receiving money.