NFL Players’ Concussion Lawyer Indicted for Racketeering
On Thursday the Justice Department announced a federal grand jury had returned an indictment charging disbarred attorney Phillip Howard, who represented more than 25 former players in the NFL concussion settlement, with racketeering. The charge, brought by the U.S. Attorney’s Office in Tallahassee, Fla., alleges that Howard duped players into moving their retirement funds into a fraudulent network of investments known as the Cambridge Entitiesx.
In a scheme to pocket some $4 million, according to the indictment, Howard allegedly shared false investment prospectuses, entrusted player funds to an employee once convicted of federal fraud charges, and used a former legal client with a revoked medical license to evaluate the players conditions.
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The indictment, obtained by Sportico, also accuses Howard of using NFL player funds “to provide high-interest, non-recourse loans to the same, or other, former NFL players clients.” As told by prosecutors, Howard shared investment prospectuses that falsely claimed Cambridge would draw on major market indexes like the S&P 500 and NASDAQ 100. In reality, the DOJ asserts, Cambridge “invested almost exclusively in non-recourse, high-interest loans to former NFL players who were awaiting potential NFL concussion class-action settlement payouts.” This created an exploitative scheme wherein former NFL players would be loaned money—at high interest rates—from “the same pool of money in which they were already invested.”
Howard, according to the Justice Department, failed to disclose that one of the employees in his alleged investment conspiracy “was previously convicted of federal crimes involving fraud and false statements, and was barred from working for an investment firm.” Howard is also described as failing to reveal that Florida Bar rules prohibited him from managing assets maintained by his law firm’s clients. He also, the indictment says, neglected to mention that he had dissolved one of the companies and re-registered it in another state.
In addition to alleged fraudulent acts regarding investments, Howard is accused of illegally manipulating the NFL medical claims process by retaining the former legal client whose medical license was revoked. The former client performed baseline psychometric evaluations, which require performance by a person with a valid medical license. Howard is also accused of editing and drafting medical records for former NFL player clients “for the purpose of influencing whether the clients would qualify for a monetary award from the NFL concussion settlement.”
Howard, the indictment charges, is said to have fraudulently obtained or attempted to obtain more than $4 million. The DOJ asserts that Howard engaged in various acts to further the racket, such as by depositing and transferring ill-gotten funds through banking institutions.
According to public court records, Howard represented such retired NFL players as Detroit Lions linebacker Tracy Scroggins, Jacksonville Jaguars quarterback Quinn Gray, Baltimore Ravens cornerback Danny Gorrer, New Orleans Saints wide receiver Joe Horn and Miami Dolphins safety Shawn Wooden. He also represented Rose Stabler, the ex-wife of former Oakland Raiders quarterback Ken Stabler.
In 2020, Howard reached a settlement with the U.S. Securities and Exchange Commission over fraudulent acts. The SEC had accused Howard of misrepresenting the funds of clients–including retired NFL players–and using a portion of their investment money for his personal benefit. The settlement barred him from association with any broker, dealer or investment advisor. Earlier this year, the Florida Supreme Court affirmed a decision to disbar Howard for mishandling a client’s money and taking advantage of that client.
Howard will have an opportunity to build a defense against the racketeering charge and argue he’s wrongly accused. If convicted, Howard would face a maximum penalty of 20 years in prison, plus an additional three years of supervised release following any prison sentence.
Howard is scheduled to face trial on Jan. 30, 2023, before Tallahassee federal judge Mark Walker.
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