How Athletes Can Vet a Financial Advisor and Reduce Fraud Risk | Jimmy Bisharat
By: Jimmy Bisharat | Wealth Advisor, Gerber Kawasaki Wealth & Investment Management
When an athlete loses money to investment fraud, the conversation often turns to how they could have let it happen. That overlooks something fundamental: someone deliberately deceived them. The responsibility belongs to the person who committed the fraud.
InvestmentNews recently reported that former Texas advisor Siddharth Jawahar received an 11-year prison sentence for a Ponzi scheme involving more than $35 million, with Travis Kelce reportedly among the victims. Read the reporting.
We do not know what Kelce was told or how he evaluated the investment. But the case raises a question that matters to a college athlete receiving NIL income just as much as a veteran professional: how can someone tell whether their trust is supported by real safeguards?
A teammate’s referral, an impressive client list, or an invitation to an exclusive deal can make someone feel credible. Those connections may open a conversation. The next step is verifying the person, the investment, and what happens to the money.
A relationship deserves a background check
A recommendation from a teammate, agent, or family member can be a helpful introduction. It should still be followed by a closer look at the advisor’s background.
FINRA BrokerCheck and the SEC’s investment adviser database let athletes and parents review an advisor and their firm. These records show registration status, work history, and reported complaints or disciplinary actions.
The details matter. A complaint does not automatically mean someone did something wrong, and a clean record does not guarantee honesty. Reviewing those records gives families a better starting point for deciding whom to trust.
For anyone unsure how to read these disclosures, I am happy to review them and help identify questions to ask.
Where the money goes matters
An athlete should know where their money is held and who has permission to move it. For a standard investment account, statements should come directly from the custodian, the financial institution holding the assets (i.e., Schwab, Fidelity, LPL, etc). A spreadsheet from the advisor should never be the only record of what a client owns.
Permission to buy and sell investments is different from permission to withdraw money. Families should understand which transfers need their approval and whether they receive alerts when money moves.
Private funds require a closer look. An independent professional can help review who holds the money, who maintains the records, and whether an outside accounting firm audits the fund’s financial statements. Those firms should be verified independently, and wire instructions should be confirmed through a trusted contact before money is sent.
An audit or independent custodian cannot guarantee protection from fraud. But each can provide another layer of oversight. When one person controls the money and produces the only reports about it, there is more reason to ask questions.
If an investment’s setup is unclear, reach out before committing money. I am happy to help identify what needs a closer look.
Clear explanations are part of the relationship
Athletes do not need to become financial experts to understand the basics of their own investments. They should know what they own, how it could make or lose money, what it costs, and when they can get their money back.
That understanding may take more than one conversation. An advisor who cares about education should be willing to slow down, use an example, or explain something another way. A client should feel comfortable saying that an answer still does not make sense.
One confusing explanation does not prove fraud. A pattern of avoiding questions, belittling a client’s knowledge, or pushing ahead without clarity is a reason to pause.
Promises of unusually high returns with little risk and pressure to act immediately are also warning signs. Another athlete’s involvement cannot replace an independent review. The SEC highlights these types of red flags.
The incentives should be clear too
Understanding an advisor’s recommendation also means understanding how everyone gets paid. Advisory fees, referral payments, and ownership interests in a recommended investment can create conflicts that deserve discussion.
The advisory agreement and disclosure documents, including Form ADV and Form CRS where applicable, help explain the firm’s services, fees, and potential conflicts. A willingness to discuss those documents openly matters as much as making them available.
An athlete can also ask whether the advisor is acting as a fiduciary, with a duty to put the client’s interests first in the advisory relationship. That commitment should be supported by written terms and transparent conduct.
When the paperwork or explanation leaves questions unanswered, a second opinion can help. A qualified advisor, CPA, or attorney with relevant experience should be independent of the person promoting the deal. Their compensation and potential conflicts should be understood as well.
The value that never appears on a statement
Some of the most valuable work an advisor does never shows up as an investment return. At our firm, we have had many conversations with clients about opportunities that raised concerns. Sometimes the recommendation is to ask for more information or walk away.
That can be disappointing. An exciting investment with a big promised payoff is often more appealing than a cautious answer. A good advisor should still be willing to have the uncomfortable conversation and explain the reasoning.
For athletes, the stakes reach beyond the next season. Today’s earnings may need to support a family, a future career, and decades of life after sports. Taking time to understand a financial relationship helps protect the opportunities that money can create.
If you are an athlete or parent evaluating an advisor, reviewing an investment, or simply looking for a second set of eyes, I welcome the conversation. I am here to talk about the disclosures, questions, and next steps that deserve attention before you commit.
Sources:
Gerber Kawasaki Wealth & Investment Management is an investment advisor located in California. Gerber Kawasaki Wealth & Investment Management is registered with the Securities and Exchange Commission (SEC). Registration of an investment advisor does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. Gerber Kawasaki only transacts business in states in which it is properly registered or is excluded or exempted from registration. A copy of Gerber Kawasaki Wealth & Investment Management 's current written disclosure brochure filed with the SEC which discusses, among other things, Gerber Kawasaki Wealth & Investment Management's business practices, services and fees, is available through the SEC's website at: http://www.adviserinfo.sec.gov .
Jimmy Bisharat is a Financial Advisor of Santa Monica, California-based Gerber Kawasaki Inc., an SEC-registered investment firm with approximately ~$4.78B billion in assets under management and assets under advisement as of 06/30/26. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. This material is for general information only and is not intended to provide specific tax or investment advice. Consult your tax professional regarding your individual situation.To determine which course of action may be appropriate for you, consult your financial advisor. No strategy assures success or protects against loss. Readers shouldn't buy any investment without doing their research to determine if the investments are suitable for their situation. “All investments involve risk and one should consult a financial advisor before making any investments. Past performance is not indicative of future results."
