by John Darer CLU ChFC CSSC RSP
Former New York Yankees pitcher Denny Neagle filed a lawsuit Monday claiming that a Northbrook Illinois financial adviser who was “like a father” to him pilfered money while investing in risky “alternative investments” without his knowledge. According to the Complaint Neagle and his ex-wife Jennifer Neagle were “utterly unsophisticated” when it came to financial management and investment, and came to William S. Leavitt and Leavitt Capital Management, Inc. for guidance in 1995, according to a suit filed in Cook County Circuit Court.
The Neagles told Leavitt that they needed their money to be placed in conservative and liquid investments such as stocks, bonds and mutual funds, the suit said. Leavitt promised to do so and had full access to the Neagles’ accounts, check-writing privileges and the ability to execute wire transfers on their behalf.
Unbeknown 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.”. It's an incredibly sad, but all too common story.
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