3 NHL Players Collect $1.4 Million Following Northern Trust Enabled Scam
Northern Trust Corporation (NASDAQ: NTRS) appears to have enabled a shocking fraud scheme that cost NHL players, including Bryan Berard and Michael Peca, at least $13.5 million, New York Daily News reported citing court documents and a former bank employee.
The Scam
NY Daily News said the scheme lured NHL players as well as other investors "into a crooked real estate venture." The report noted that Northern Trust has mostly avoided repercussions for its dealings with disgraced financial adviser Phil Kenner.
"Federal prosecutors say Kenner plundered the retirement savings of pro hockey players who believed Kenner was parking their money at the bank for real estate ventures," the report read.
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"Northern Trust did nothing to protect its clients and continued collecting interest and investment management fees until the money was all gone," former Northern Trust banker Aaron Mascarella told the NY Daily News. "It's obvious what they did was wrong and I have recordings that support that."
Settlement Figures
The report continued, "New court documents show Northern Trust has quietly settled civil cases with at least three NHL players victimized in the scam," listing Berard, Peca and NHL journeyman Owen Nolan.
According to the report, a court filing stated the three players collected $1.4 million in negotiated settlements.
At time of writing, shares of Northern Trust were down 0.31 percent on the day at $73.08.
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