Saturday, 28 May 2016
Last updated 19 hours ago
Oct 19 2010 | 1:41am ET
Hall of Fame quarterback John Elway and his business partner have moved to protect what might be left of the $15 million they invested with accused hedge fund fraudster Sean Mueller.
Elway and Mitch Pierce said in court papers that their investment was supposed to be kept in a separate account from Mueller's Over Under Fund. The Denver Broncos legend is seeking a declaratory judgment for the return of their money, ahead of other investors.
Elway and Pierce's Crown Toyota in Ontario, Calif., invested with Mueller just seven months ago, in March. While both had invested with Mueller for years, the March investment was made "after receiving assurances from Mueller that the new funds would not be mingled with any other funds" and would be "held in trust, in their respective names, in an account at Morgan Stanley."
Mueller is expected to plead guilty to fraud charges next month. He is accused of defrauding investors of $20 million in a Ponzi scheme.
Mueller Capital Management has just $9.5 million left to cover liabilities of $140 million.