Saints lose $2 million in investment scam

[jmt57]

Apparently New Orleans Saints players and coaches are not familiar with the saying that if something sounds too good to be true, it probably is.

Film studio debts reach a wide audience - NOLA.com

According to that formula, the studio gets cash for its development and purchasers of the tax credits get a bargain rate on a tax-reduction device.

Kevin Houser, who was dismissed Monday as the long snapper for the Saints, became a point man for Read's effort to raise money among the team's current and former players and coaches. In November, 27 men with ties to the Saints -- including coach Sean Payton, quarterback Drew Brees and former quarterback Archie Manning -- paid large sums of money with the expectation that by the end of March they would get back about $1.33 in tax credits for every dollar of their investment.

In correspondence to Houser in December, Read said he planned to spend $12 million to buy the property and $13 million on reconstruction, and that the credits would be delivered by the end of March.

"No risk to you all, " Read wrote.

Now the player that was the "point man" and paid a finders fee for getting others to invest has been cut by the Saints - though I don't understand why he would be surprised.

Former New Orleans Saints longsnapper Kevin Houser says he was surprised to be released by the team - New Orleans Saints Beat

Former New Orleans Saints player Kevin Houser said Thursday that he was surprised and unprepared for the call that came Monday from Coach Sean Payton telling him that he was being released from the team.

Houser said Payton was businesslike and did not discuss a film studio investment controversy that has affected Houser and more than two dozen current and former players and coaches for the Saints who could lose nearly $2 million.

The team members individually sought to purchase state tax credits from Louisiana Film Studios, which has yet to acquire the credits or repay the players for their investment. Many of the players had followed Houser's lead in putting money into the project, and Houser has sought legal assistance to get repaid.

Houser's release was obviously not sap or performance related, but it still had to be done. But it didn't stop Jeremy Shockey from putting in his two cents worth of wisdom.

Bad investments sour New Orleans Saints' relationship with long snapper Kevin Houser - Jeff Duncan on Saints

The Saints knew they were giving away a quality player for next to nothing. They didn't want to do it. But for the sake of locker-room chemistry, they had to act.

Ditto Houser.

Houser said no players had complained about the mess to him, but judging from some of the comments from players -- publicly and privately -- the past two weeks, it clearly is an issue.

Tight end Jeremy Shockey, who invested $80,000 in the plan, apparently posted two unflattering "tweets" on his Twitter.com account Tuesday:
"thx chad houser our long snapper for losing my coaches, teamates, and me around 2mill$.. what a dumb ass. ..... you think your buying LA film tac creits. but the f -- -- -- snapper didn't... wow this is a f -- -- - up world we live in."

Maybe Shockey should have taken some of that $80k and hired a tutor to teach him how to spell and write. And as far as he and any of the other players and coaches who are out of money they invested, I wonder if any of them sought out the advice of a financial advisor in regards to this investment?

 

[PatsWickedPissah]

I am somewhat experienced in financial matters but my opinion of the expertise of financial advisors has been revised sharply downward after the 2007 mortgage and credit debacle, never mind those dozens of so-called financial advisors who put clients money into the Madoff scheme.

Nonetheless, ya gotta cut the guy for team morale reasons.