Morgan Stanley is involved in an arbitration with Washington Redskins running back Adrian Peterson, according to news reports.
Peterson’s lawyer, Chase Carlson of Carlson Law, has confirmed to CNBC.com in an email that the dispute involves a failed investment and that the arbitration is ongoing. Carlson is representing the football player with Sam Edwards and Ryan Cook of Shepherd Smith Edwards & Kantas in Houston, according to the TV news channel’s website.
But few other details of the dispute exist, according to CNBC.com. A spokeswoman for Morgan Stanley tells the website that the firm deems the claims without merit and is therefore defending against them. The news was first reported by The Athletic.
Peterson’s reported earnings over his 12-year career with the NFL are estimated at more than $100 million, CNBC.com writes. But Peterson has run into some financial trouble already. He’s facing a lawsuit from DeAngelo Vehicle Sales, a McAdoo, Pa.-based creditor that’s claiming Peterson failed to fully repay a $5.2 million loan and owes the firm $6.6 million when considering interest and other fees, according to the website.
Morgan Stanley, meanwhile, has been involved in at least two arbitrations with former NFL stars over the past few years. In 2018, a Finra arbitration panel ordered the wirehouse to pay $879,000 to Asante Samuel, who had been a cornerback in the NFL until 2013, over a claim that a former Morgan Stanley broker got him to invest in a nightclub that closed in 2014.
The broker in that case was Aaron Parthemer, who had worked at Morgan Stanley from 2009 to 2011 and at Wells Fargo Advisors from 2011 to 2015, when he was barred from the industry. And it was the same broker involved in a Finra arbitration in 2016, in which Morgan Stanley was ordered to pay $819,000 to Keyon Dooling, a former guard with the NBA, and John St. Clair, a former NFL offensive tackle. Parthemer allegedly convinced the two athletes to invest in a sportswear company that also went bust.
Do you have a news tip you’d like to share with FA-IQ? Email us at firstname.lastname@example.org.