Report: Jake Peavy, Roy Oswalt defrauded of millions in an investment scheme

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Henry Schulman of the San Francisco Chronicle reports that Giants starter Jake Peavy and retired pitcher Roy Oswalt, as well as quarterback Mark Sanchez were defraud of millions in an investment scheme. Schulman cites a Bloomberg News report which identified the three athletes and the adviser, Ash Narayan.

Peavy, Oswalt, and Sanchez reportedly invested $30.4 million and paid Narayan an additional $1.7 million fees. Narayan redirected that money, which was supposed to go towards safe investments, in a sports ticket brokerage which ultimately failed. Narayan was a major shareholder in that sports ticket brokerage. The SEC is attempting to freeze his assets to help the athletes recover the money that was taken.

The SEC filing alleges that Narayan preyed on the athletes by appealing to their Christian faith and interest in charitable work.

Peavy said the situation distracted him at times, first learning of the situation on the first day of spring training. He said, “I think I did the best I could to stay focused. Maybe at times I haven’t done my best, but I think the last month is indicative of what I can do to help this team. I’m doing what I can to push the needle forward. We’re working through it the best we can.”