The money manager who committed suicide last month after allegedly operating a Ponzi scheme that allegedly defrauded more than a 100 investors — including a dozen NCAA basketball coaches — will still be compelled to pay, according to the SEC.
But because David Salinas can’t, the SEC filed a lawsuit Monday against his estate.
The mess began when the SEC opened investigation into Salinas, the chairman of J. David Financial Group in Friendswood, Texas. Salinas also founded the Houston Select AAU basketball, a program for high school basketball recruits, which might have given him an introduction to the basketball coaches he allegedly defrauded.
Salinas, 60, committed suicide during the SEC investigation. He was found dead with a gunshot wound in his home on July 17.
Since then, the SEC has finished its investigation. It now alleges that throughout his career, Salinas swindled investors out of more than $39 million, according to the Associated Press.
Thus the suit orders Salinas’ assets be frozen.
“The suit, filed in U.S. District Court in Houston, targets the estate of David Salinas and asks that it and other defendants give up funds and benefits they allegedly obtained illegally through the bond scheme and another involving two private funds. The SEC also is seeking an undetermined amount in penalties.”
After his death, it was revealed that several high profile baseketball coaches allegedly defrauded by Salinas lost more than $7.8 million, according to a report SI.com. These coaches include Gonzaga coach Mark Few, Texas Tech’s Billy Gillispie, Baylor’s Scott Drew and former Arizona coach Lute Olson, SI.com reported.
“According to documents reviewed by SI.com, the value of Gillispie’s investment alone was purported to be $2.3 million; Olson’s, $1.17 million; Drew’s, $621,000; Few’s, $353,000.”