01.10.12

Not For The First Time, Denny Neagle’s Financial Judgement Appears Questionable

Posted in Baseball, The Law, The Marketplace at 6:45 pm by

(above: one of Denny’s bad investments)

12-year MLB veteran P Denny Neagle, though a two-time All-Star, will remain best remembered at CSTB HQ for his role in what was called at the time, “History’s Most Expensive Blowjob”. On Tuesday, the Chicago Sun-Times’ Allison Horton reports Neagle is suing his former financial advisor, William C. Leavitt of Leavitt Capital Management.

“Leavitt became like a father to the Nagles,” the suit said. The Leavitts took vacations with the Neagles as well as attending Denny’s baseball games. “The Neagles trusted Levitt so much” that he was named in their wills as executors of their estates and trustee of some accounts created for the Neagles’ children.

Unbeknownst to the Neagles, Leavitt was allegedly investing the Neagles in hedge funds, private equity funds and other unregulated investments that were incredibly risky, illiquid, and laden with fees, the suit said.

The suit claims that at one point Leavitt placed 80 percent of the Neagles’ investment portfolio in these “alternative investments.”

The suit claims the Neagles were made aware of Leavitt’s actions when someone visiting their home in the late 2000s happened to notice and question one of the subscription agreements.

The suit claims the Neagles also paid taxes on “phantom income,” incurred huge losses in failing “alternative investments,” cannot now access most of their financial portfolio because it is locked in illiquid “alternative investments” and must pay substantial “capital calls” or cash infusions in the thousands of dollars for investments that yield no long-term investment payoff.

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