Los Angeles – A team of former-NBA-players-cum-restaurant-entrepreneurs reached a tentative $1 million settlement with an insurance agent and two insurance companies who allegedly defrauded the group in a business loan scheme.
The ballplayers, who include David Greenwood, a former Chicago Bulls forward who was second only to Ervin “Magic” Johnson in the 1979 NBA draft, secured a series of loans beginning in the late 1990s by taking out life insurance policies for collateral.
The plaintiffs’ list in the suit reads like a who’s who of former all-star players, from Jackie Robinson, a forward for the Seattle Supersonics, to Reggie Theus, who played guard for the Chicago Bulls and is head coach for the New Mexico State University men’s basketball team.
Other plaintiffs in the group include Clark Parker, a wealthy businessman and honorary consul to the Central African Republic.
The players ended up borrowing more than $6.5 million from A.I. Credit using Movsesian’s approach, according to Gregory Doll and Hunter Eley of Doll Amir & Eley, who represent the group.
According to Doll, the group will receive $300,000 from the insurance companies and $700,000 from Movsesian and his company.
Though Doll declined to specify the original damages he was seeking, he said the group was satisfied with the settlement, which will be split among the players based in part on the value of the life insurance policy each person bought from Movsesian.