Archive for the ‘Sports’ Category
Experts on Ponzi schemes will tell you that the victims are often preyed upon by a trusted person in their inner circle, such as a church member, a neighbor, or someone with whom they share an ethnic tie. However, until now, I had never heard of that trusted person being your daughter’s high school softball coach.
Even for Ponzi scheme victims, these softball parents, if a recent lawsuit is to be believed, set new standards for being what Bugs Bunny would call gulli-bulls. If Louisville, Colo., Monarch High coach Richard Dale Mott had an $11 billion fortune and a mansion stocked with expensive cars, why the hell would he be coaching girls’ high school softball? For the investment contacts? To give back to the community? (Boy, if he said that last one, that REALLY should have been a tip-off.)
Technically, what Mott is accused of doing is loan fraud, because he allegedly didn’t even get far enough to “invest” proceeds anymore. But the dynamics are the same.
Randy Davenport, who was president of the Monarch Fastpitch Softball Club and whose daughter plays on the team, sued Richard Dale Mott after he said he was unable to recover $80,000 he loaned Mott to fund a supposed gypsum mining operation in Wyoming.
Davenport alleged in his suit that Mott, who resigned as coach from the Louisville high school in December, had promised him a $50,000 interest payment on the loan and had guaranteed the loan with a promissory note.
Mott also got loans from “numerous members of the Monarch High School parent community” that he never repaid, the suit states.
Davenport claimed that Mott, who was hired by the Boulder Valley School District in the summer of 2008, made off with $185,000 total from four or five investors, including himself.
“It’s an expensive lesson and one that I will be paying for,” Davenport said Thursday. “I want to see that guy suffer some kind of consequences for what he’s done.”
According to the Daily Camera story, Davenport said Mott told the parents he had set aside $25 million for each of his children. In reality, Mott lived in a rented house and was hundreds of thousands of dollars in debt, and had settled numerous breach-of-contract cases in the past. (The newspaper called various Richard Motts, but it could not find the one in question.)
We can agree that Richard Mott, if he did what Davenport said he did, is a bad person. So is Bernard Madoff. So is Allen Stanford. And so is Nicholas Cosmo, who at least plowed some of the $375 million he apparently swindled out of suckers in his Ponzi scheme back into youth sports.
But jumpin’ Jesus H. Christ on a pogo stick, how greedy and/or dense do you have to be to hand $80,000 over to your daughter’s softball coach to invest in some bullshit you don’t understand, even if the coach is Charles Fuckin’ Schwab? Did the Monarch parents ever, oh, stop by his mansion to check it out? Do a Google search on Mott? Check the Forbes 500 to see if Mott’s name was in it? (At $11 billion, it would have been.) Get statements on the potential investment and run them by a financial adviser? Ask themselves why their daughters’ softball team was coached by a billionaire who needed to hustle parents for money? Find out what gypsum was?
Ponzi scheme experts will tell you that the scammers know what they’re doing, that their delivery is smooth, and that peer pressure can take over good judgment, especially if your friends are getting statements back about how fabulously their investments are doing. As the old saying goes: If it sounds too good to be true, it is. And, if your daughter’s softball coach approaches you with a hot investment, ask why, if the coach is so smart, he or she still can’t figure out how to teach players how to field a ground ball cleanly.
And if that isn’t enough to help you avoid investment scams, perhaps this video will help. Ahem, her face is up there.