NBA legend Jerry West, Dodgers third-baseman Nomar Garciaparra and a bevy of other major sports figures have accused their prominent Los Angeles investment advisor of gouging them out of more than $3 million in excessive commissions on bond trades.
Gary R. Fournier, who has handled investments for scores of sports stars and celebrities, allegedly misrepresented his commissions and "churned" accounts to generate unnecessary trades and exorbitant fees, according to a claim filed with securities regulators.
In papers filed with the Financial Industry Regulatory Authority, West and the others seek unspecified damages from Fournier's former employer, UBS Financial Services Inc.
The claim is similar to a civil lawsuit and will be resolved through binding arbitration proceedings slated for July. It does not name Fournier as a party to the case, although the allegations focus on his actions.
Fournier, who has denied wrongdoing, declined to comment.
"All I can tell you is I am confident he is going to be fully exonerated after this gets heard," his lawyer, Michael Blumenfeld, said.
UBS contends the allegations are baseless. "We disagree with the clients' statement of claim, and we intend to defend ourselves vigorously in this matter," UBS spokeswoman Karina Byrne said.
Fournier, who moved from UBS to Bear Stearns Cos. in September 2006, is a financial advisor with more than 30 years of experience.
Those who now say they were defrauded include West, the Los Angeles Lakers' "Mr. Clutch" as a player and later a top executive, and General Manager Mitch Kupchak. Others include current and former National Basketball Assn. players B.J. Armstrong, Brent Barry, Stacey Augmon and Jeffrey West as well as former Major League Baseball players Sean Douglass, Mark Langston, Thomas P. O'Malley and Rex "Wonder Dog" Hudler, who is now a color commentator for the Angels.
High-powered sports agent Arn Tellem and his wife, Nancy Tellem, president of CBS Paramount Network Television Entertainment Group, are also among the claimants. Most declined to comment through their lawyer, Steven M. Goldberg, or did not return phone messages. Others could not be reached.
Most of those making claims were clients of Arn Tellem, Goldberg said. Tellem had invested with Fournier since 1991, when the broker was with Kidder Peabody & Co., according to papers filed by UBS.
