Former Philadelphia Eagles Player Charged With $10 Million Fraud

Merrill Robertson Jr., a former professional football player for the Philadelphia Eagles, was charged Wednesday with defrauding investors by the Securities and Exchange Commission.

The SEC said in a release that Robertson defrauded investors, including coaches he played for while spending time at the Fork Union Military Academy and the University of Virginia. The complaint was filed in federal court in Virginia and charges the ex football pro, along with Sherman C. Vaughn Jr., for diverting nearly $6 million of the more than $10 million they raised from investors for a company they co-owned, Cavalier Union Investments.

The two individuals alleged to have lied to investors about the unregistered debt securities they sold and claimed the investments would yield as much as a 20 percent return while simultaneously "providing safety and security" for the investors.

Related Link: Prince Fielder And 4 Of The Biggest Sports Contracts Cut Short

They are also charged with hiding the fact that their investment management firm didn't employ any real investment advisers and the company was insolvent shortly after it was formed. To stay afloat, the two raised cash from new investors which also included seniors, donors, alumni and employees of schools Robertson attended.

"Our complaint alleges that Robertson and Vaughn preyed on elderly victims and others who placed their trust in these individuals, only to have their savings stolen," said Sharon B. Binger, Director of the SEC's Philadelphia Regional Office. "We will continue to aggressively pursue fraudsters who exploit their relationship of trust with victims and promise returns that appear to be too good to be true."

The U.S. Attorney's Office for the Eastern District of Virginia also announced in a parallel action criminal charges against Robertson.

As is always the case, investors can easily verify the background of people selling them investments through the SEC's investor.gov website.