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Investment Advisor Who Stole $43 Million from Ex-Hockey Star Convicted

By Erwin J. Shustak, Esq.  of Shustak Reynolds & Partners, P.C. posted on Friday, September 11, 2015.

Former investment manager Joseph Zada, charged with swindling $43 million from former Detroit Red Wings star Sergei Fedorov was convicted in Florida last week  of 15 counts of fraud and faces a 20 year prison term.  The specific charges on which he was convicted also included two counts of  making false statements in connection with a loan application. Zada is also charged with stealing millions from other dozens of other, unsuspecting investors.

Fedorov, 45, won three Stanley Cups and a Hart Trophy as the NHL’s most valuable player while a Red Wing from 1990-2003.

According to court records, Zada swindled the money by pretending to be a rich and successful businessman with ties to Saudi Arabian oil ventures. Zada told potential investors that he could quickly turn investments into large profits.  Ultimately, Fedorov brought a civil suit against Zada in 2009 for embezzling $43 million over 11 years.

Like many fraudsters, Zada hosted extravagant parties, drove luxury cars and kept expensive homes in Grosse Pointe and Florida, according to federal documents. Zada used his victims' money to pay for his lifestyle, according to the government.

Fedorov met Zada in 1998, the same year he signed what was at the time one of hockey's most lucrative contract's ever -- a $38-million, 6-year deal. Fedorov invested money with Zada but their relationship quickly soured. Whenever Fedorov inquired about the money, Zada "intentionally lied," according to the lawsuit, and provided him with false information and other "deceptions."  Zada and Fedorov struck a deal that called for Zada to pay Fedorov $60 million but he never paid.

Shustak & Partners, P.C. has extensive expertise and experience in the areas of securities, financial services and business law.  For more information  contact Erwin J. Shustak, Esq, Managing Partner, at 619.696.9500 or via email at [email protected]

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