Reggie Bush PFT

[KD]

[FONT=Georgia]POSTED 6:04 a.m. EDT, April 28, 2006[/FONT]
[FONT=Georgia]MICHAELS PLANNING TO SUE BUSH FAMILY FOR FRAUD[/FONT]
[FONT=Georgia]The story has finally come full circle. As we first heard the rumors more than two weeks ago, the owner of the house in which Reggie Bush's family was living planned to go public regarding issues relating to their residence in the house -- and the decision of Bush not to retain the owner of the house to be his marketing representative.[/FONT]
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[FONT=Georgia]Now, the San Diego Union-Tribune reports that Michael Michaels claims that Bush's family owes him $54,000 in unpaid rent -- and that Michaels' lawyer is drawing up a $3.2 million lawsuit against Bush's parents, and possibly Bush himself, for fraud.[/FONT]
[FONT=Georgia]Michaels, who had nothing to say in the early stages of this story, claims that Bush's parents agreed to pay $4,500 per month in rent. Given that Michaels alleges that he is owed $54,000 in rent, this means that Bush's parents didn't pay rent for a full year.[/FONT]
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[FONT=Georgia]Michaels told the Union-Tribune that [/FONT][FONT=Georgia]when Bush's family failed to pay the first few months' rent, they said they would pay when Bush turned pro.[/FONT]
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[FONT=Georgia]Though it's unclear whether the promise to pay when Bush "turned pro" meant that they'd pay the rent when Bush declares that he's entering the draft or when he actually gets paid, the Union-Tribune reports that the relationship deteriorated because Bush didn't retain Michaels' fledgling marketing firm. So, on April 3, Michaels' lawyer sent Bush's family a letter demanding that they vacate the premises. [/FONT]
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[FONT=Georgia]The family didn't leave until after reporters started asking questions about the arrangement.[/FONT]
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[FONT=Georgia]But it's one thing to claim that Bush's family stiffed Michaels for rent. It's quite another to allege fraud, which connotes that Bush's family made an intentional misrepresentation to Michaels, on which he relied to his financial detriment.[/FONT]
[FONT=Georgia]A misrepresentation such as, "Yeah, Reggie will hire you to handle his marketing."[/FONT]
[FONT=Georgia]Indeed, Michaels' lawyer told the Union-Tribune that Michaels and partner Lloyd Lake have $300,000 in out-of-pocket expenses, and that "Michaels and [Lake incurred additional expenses associated with starting the marketing agency."[/FONT]
[FONT=Georgia]Here's the key, in our view -- Michaels claims that "he was approached by Bush's stepfather, LaMar Griffin, and Lake, who is now in federal prison in Victorville, to invest in a sports marketing company they were starting," and that "[t]hey would share ownership in the company, New Era, and Bush was to be their primary client."[/FONT]
[FONT=Georgia]So it appears, then, that Michaels believes he was duped by LaMar Griffin into spending money and allowing Bush's family to live in the house owned by Michaels pursuant to an express understanding that the marketing firm founded by Michaels and Lake would later cash in by representing Reggie.[/FONT]
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[FONT=Georgia]If these allegations are true, Reggie should be spending some quality time with his Heisman, because we're now convinced that he's eventually going to have to give it to Uncle Rico.[/FONT]

[theogt]

Yeah, right.

[GTaylor]

$3.2 million??? Are these guys claiming that they should be his agent and get a cut of future earnings??

[CrazyCowboy]

It will all be A-OK with Bush at 11:15 est Saturday.....

[WoodysGirl]

NFL Security says Bush victim of threats by agent

ESPN.com news services

The NFL Players Association and NFL Security have concluded that sports agent David Caravantes and fledgling marketing company New Era Sports used an attorney to try and force USC running back Reggie Bush to pay them $3.2 million after Bush decided not to sign with the group, sources told ESPN's Joe Schad on Thursday.

According to the sources, Caravantes threatened to reveal embarrassing personal information about the Bush family if he did not receive the money. Sources also say Caravantes tried to evict the family from a San Diego house they rented from his business associate Michael Michaels.

The NFLPA claims in a disciplinary complaint written Thursday that Brian Watkins, an attorney allegedly representing Caravantes and New Era Sports, engaged in unlawful conduct by demanding payment in at least three letters. Those letters were dated Feb. 13, March 7 and April 26, a source said. In another letter to the Bush family, dated March 2, Watkins identifies his clients as New Era Sports and Caravantes. New Era Sports marketing materials identify Caravantes as Chief Executive Officer, according to the source.

According to records found on the California Secretary of State's Web site, New Era Sports and Entertainment, LLC filed as a limited liability corporation with the state on Nov. 23, 2005. According to the records, the entity remains active and its "agent for service of process" was Phillip M. Smith Jr.

When reached by Yahoo! Sports to discuss the company, Smith ended the conversation by saying, "That's really not an issue that I want to deal with."
Caravantes said late Thursday night that Watkins does not work for him. Caravantes also said he had no knowledge of any threats made against the Bush family, including eviction from the home. Caravantes denied being employed by New Era Sports and said he had no knowledge of a complaint filed with the NFLPA.

Calls to Watkins' office were not returned Thursday.

David Cornwell, attorney for the Bush family, would not comment on the NFLPA or NFL Security findings other than to say there was "comfort that two independent, third parties have reached the same conclusion we have."

The house rental is still the subject of an investigation by the NCAA and the Pac-10. Officials have contacted Bush's attorney and told him they will wait until after this weekend's NFL draft to conduct interviews on how payments were made on the house. Bush's family no longer lives there.

In an interview on ESPN on Monday, Bush did not get into specifics about the controversy but said, "when this is all said and done, everyone will see at the end of the day that we've done absolutely nothing wrong."

Also, a source close to Bush said NFL Security has contacted the top four teams in the NFL draft and told them Bush was the victim of threats.

Cornwell says that Bush had no knowledge of an agreement between his parents and Michaels, the man who owned the $750,000 home the Bush family lived in for the past year.

Bush added that his "parents leased a house like any other parent." Bush declined to say who paid the rent.

A source close to Bush told Schad that while the family had at first agreed to pay rent on the San Diego home, they quickly realized there was no way they could afford to. After falling behind on payments, the family will claim, however, that they were repeatedly told not to worry, that they would not be evicted.

Bush, the 2005 Heisman Trophy winner, chose to turn pro after his junior season with USC. He is expected to be the No. 1 pick in Saturday's NFL draft.

ESPN.com's Len Pasquarelli reported Thursday that talks between Bush's representatives and the Houston Texans, the team with the top draft pick, have stalled.

Information from The Associated Press is included in this report


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