Welcome to Financial Advisor IQ
Follow

Ex-Investment Advisor Sentenced to 7 Years for Defrauding NFL Star

By Alex Padalka June 11, 2018

A former investment advisor is heading to prison for seven years for stealing more than $4.7 million from former NFL player Cory Redding, WTHR.com reports.

Kenneth Ray Cleveland, who was Redding’s financial advisor for a decade, never invested Redding’s money, instead he used it to cover his own credit card bills, mortgages, employee payments, personal, business and legal expenses, healthcare and payments to his own family members, the TV station’s website writes citing the Department of Justice. When Redding was ready to retire, he had no money left, according to WTHR.com. Cleveland pleaded guilty to money laundering and federal fraud charges, the website writes. The former advisor must also pay restitution of more then $4.7 million, according to WTHR.com.

Redding, who played for the Indianapolis Colts, began working with Cleveland after a recommendation from a college professor, according to CBS4indy.com. Cleveland told Redding he would invest his money conservatively and regularly paid him “interest” on his investments, telling the former football player his investments were performing well, the TV station’s website writes.

(Getty)

In addition, Cleveland paid other investors “interest” using Redding’s money in a classic Ponzi scheme, investigators said, according to CBS4indy.com. Redding was ready to retire in 2014 but played one more season for the Arizona Cardinals to make back some of his losses, the website writes.