Judgment day for bilked pro athletes

The Securities and Exchange Commission last week wrapped up the case against Aaron Parthemer, a Florida resident who sold more than $5 million worth of unregistered and illiquid investments in a San Diego company, Global Village Concerns, which claimed it was creating "a fundamental shift in the way [nonprofit organizations, such as schools] raise capital."

Parthemer sold almost all the investments in the now-defunct local company. Parthemer was a National Football League Players Association Registered Financial Advisor and had 40 active or retired athletes (mostly from the NFL) as clients who purchased the illiquid preferred stock.

According to the Securities and Exchange Commission, he continued claiming he was a players' association representative after his membership had lapsed. He broke ethics rules of the organization in other ways, such as failing to disclose his own financial interest in the organization to clients, and telling them that their investments in Global Village Concerns had soared in value when they had not.

Parthemer admitted that the commission has jurisdiction over him and accepted the agency's sanctions. The association banned him from the brokerage business in 2015. Parthemer, now in Chapter 7 liquidation bankruptcy, is to pay $160,000 to the securities commission, which might distribute sums to losing investors.

In 2014, San Diegan Bill (Billy) Crafton was charged both civilly and criminally with fleecing his professional athlete clients.