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Owens suing Rosenhaus for $6.5 million

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Former NFL wide receiver Terrell Owens is suing agent Drew Rosenhaus and his brother, Jason Rosenhaus, for $6.5 million.

According to Yahoo! Sports, Owens is seeking damages for breach of fiduciary duty, fraud, and negligence.

In the lawsuit, Owens claims that Rosenhaus introduced him to financial adviser Jeff Rubin and recommended that Owens hire Rubin to manage his finances. He alleges that the now-banned financial adviser poorly invested his money, including in an illegal and now-bankrupt casino project in Alabama.

Owens claims that the advice given by the Rosenhaus brothers and hiring Rubin caused him to lose nearly $5 million, and another $1.5 million in income could have been generated if invested properly.

"Terrell trusted (Drew) Rosenhaus when he recommended that Terrell hire Rubin as his financial adviser," said Owens' attorneys, Curtis Carlson and Chase Carlson of Miami-based Carlson and Lewittes, P.A. "It is completely ridiculous that Rosenhaus would refer a five-time Pro Bowler to a financial advisor who has been accused of stealing from his clients in the past, whose college degree was in Exercise Science, and who was inexperienced. Rosenhaus should have steered Terrell away from Rubin, not toward him."

Rosenhaus declined to comment.

Rubin used his relationship with Rosenhaus to secure investments from 32 NFL players in the failed Alabama casino project that lost more than $40 million, according to Yahoo! Sports. Eighteen of those players were Rosenhaus clients at one point, including Plaxico Burress, Frank Gore, Jevon Kearse, Santana Moss, Owens, Clinton Portis and Fred Taylor.

Rubin was eventually banned by the Financial Industry Regulatory Authority for life from working in the financial industry for recommending that his clients invest in the failed casino project.

"This case demonstrates how broker misconduct can target high-income, inexperienced, and vulnerable investors," stated Brad Bennett, FINRA's executive vice president and chief of enforcement, in a press release announcing the ban in March 2012. "Jeffrey Rubin took advantage of professional athletes who placed their trust in him."

Among several other allegations by Owens, he believes that the Rosenhaus brothers and Rubin had a "mutual, reciprocal referral relationship and not because of Rubin's merit as a financial advisor or an investment adviser." Owens claims that Rubin placed him in those investments "for the purpose of generating over-sized commissions for himself." Owens also alleges that "Rubin was using, if not abusing, illegal drugs, including cocaine and ecstasy. In 2005, Rubin's fiance died of a drug overdose, which Defendants had knowledge of."

Rubin's financial transgressions occurred from 2003 to 2011, according to the suit.

The NFL Players Association investigated the relationship between Rubin and Rosenhaus in September 2012 but it is not known if it is still ongoing.
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