Pro Athletes, Including SF Giant, Scammed Out of More Than $30M: SEC

By Joe Vince (Patch Staff):

Lake Forest, IL — A Lake Forest-based online sports and entertainment ticket company is accused of helping to run a Ponzi-like scheme that cheated several pro athletes out of more than $30 million, according to the Securities and Exchange Commission.

Ash Narayan, a California investment adviser, is said to have funneled more than $33 million from his pro athlete clients into the cash-strapped accounts of The Ticket Reserve, which operates out of 840 South Waukegan Road, according to the SEC's complaint, which was unsealed Tuesday, June 21, in a federal court in Dallas. In many cases, the money was redirected without his clients' knowledge or consent thanks to forged signatures and documents, the SEC alleges.

After losing money for the past four years, The Ticket Reserve became reliant on those fraudulent transactions in order to stay afloat, the federal agency claims. Narayan allegedly received around $2 million from The Ticket Reserve for his part in the scheme, the SEC says.

Some of the athletes who unwittingly contributed to The Ticket Reserve's financial survival include San Francisco Giants pitcher Jake Peavy, Denver Broncos quarterback Mark Sanchez and retired Houston Astros pitcher Roy Oswalt, The Associated Press reports.

• RELATED: Read the Full SEC Complaint Against The Ticket Reserve

• Peavy: $15.1 million
• Sanchez: almost $7.8 million
• Oswalt: almost $7.6 million

The SEC's complaint, which was filed May 24, also asked for the assets of Narayan and The Ticket Reserve, as well as the company's CEO, Richard M. Harmon, and CFO, John A. Kaptrosky—both of Lake Forest—be frozen. A judge granted that request, along with the request that a receiver be appointed over The Ticket Reserve.

In a statement to The AP, Harmon's lawyer denied any wrongdoing on behalf of his client, Kaptrosky and The Ticket Reserve:

"Neither Rick Harmon nor his chief operating officer, John Kaptrosky, did anything wrong while Mr. Harmon was CEO of The Ticket Reserve, and they and the company were in fact victims of someone else's alleged wrongdoing."

Although the Lake Forest Police Department assisted in the SEC's investigation, no criminal charges have been filed.

The Ticket Reserve executives and Narayan also face separate litigation from a group of Texas-based investor group that claims it was misled into thinking the company was doing better financially than it was, the Cook County Recorder reports.

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