Jorge Posada claims in a new lawsuit he lost more than $11 million in a scam led by his Cuban-American money managers in Miami.
According to Vice Sports, the Yankees great is suing Juan Carlos Collar and Anthony Fernandez, who controlled his and his wife Laura Posada’s finances at Merrill Lynch and then in their own company, Quantum Family Office Group.
They had absolute control of the third baseman’s money.
Now the Posadas are suing Collar and Fernandez for what they believe was a striking and obvious mismanagement of their funds, which resulted in nearly $11.2 million in losses for the former star catcher.
The alleged scam began in 2005, after the two associates founded Quantum and formed a separate company to handle real estate deals called Sunset Trails, LLC. In this company, the lawsuit claims, they put in $3 million from Posada without ensuring the Posadas any ownership of the properties they owned.
According to Vice Sports, the Posadas had no say in what happened with any purchase. In one instance, Sunset Trails purchased a plot of land for $13.5 million that was supposed to be developed into an elite equestrian-themed community, but is currently being rented by a farmer.
According to the complaint, Sunset Trails purchased the land from Southern Acres of Florida, LLC, which had paid just $8,402,900 for it a few hours before.
“I’ve never heard of anything like that. It’s jaw-dropping,” Posada’s attorney Barry Lax told Vice Sports.
According to the lawsuit, Collar and Fernandez would approach the baseball player while he was on the road to blind sign-offs on their financial frauds.
“They would go to Jorge and they would have a stack of documents to sign, and they would just say ‘Sign here’,” Lax said. “And Jorge would sign it. He completely trusted these guys with all their finances. All of their money.”
He said everything went through Collar and Fernandez and that the Posadas never used anyone else.
The Posadas "didn't really have an understanding that they were in a hedge fund," Lax told Vice Sports. "They didn't have an understanding of the significant risks. And these two guys managed the hedge fund. They had no track record, they had no experience running a hedge fund. It's really a joke."
The couple is not the only one suing Quantum.
Former Yankees pitcher Jose Contreras claims in a separate lawsuit that the shady duo lost him nearly $2.4 million in a similar fraud claim.
“Collar and Fernandez told Contreras that Sunset Trails was a good deal, that he would make lots of money from it, and that he could bring his children there to ride horses at any time,” according to the lawsuit obtained by Vice Sports.
Both players did not find the inconsistences in their accounts until 2010.