Players affected by Stanford scandal
Situation impacting investments of Damon, Nady and Pelfrey
TAMPA, Fla. -- Yankees outfielders Johnny Damon and Xavier Nady and Mets pitcher Mike Pelfrey are reportedly among those affected by the continuing Stanford Financial Group scandal.
Damon and Nady told FOXSports.com on Friday that their finances have been frozen because of money they have with a Stanford company, including them in the alleged $8 billion fraud scheme involving billionaire financier Robert Allen Stanford.
"I can't pay bills right now," Damon told the site. "That started on Tuesday. I had to pay a trainer for working out during the offseason. I told him, 'Just hold on for a little bit, and hopefully, all this stuff gets resolved.'"
On Monday, the Securities and Exchange Commission froze all assets of Stanford International Bank, Stanford Group Co. and Stanford Capital Management.
"I'm affected in some ways; I have the same [advisor] as Johnny," Nady said. "He said I didn't have money with Stanford [investments]. But all my credit-card accounts are frozen right now because of that situation. I'm trying to get an apartment in New York. I can't put a credit card down to hold it."
Pelfrey told the New York Daily News that he is also having problems with cash flow.
"My stuff got frozen, too," he said.
Agent Scott Boras, who represents all three players, told FOXSports.com that his clients have no reason to worry about losing money. Damon is due $13 million this year from the Yankees, while Nady is set to earn $6.55 million.
"Our personal-management auditors have looked into the financial elements of it," Boras told FOXSports.com. "None of our clients is in any financial jeopardy."
Both Damon and Nady were told by their financial advisors that the matter could be resolved within a few days, according to the report.
Asked by FOXSports.com if the situation makes him nervous, Damon said it does.
"I'm not sure if the banks we owe mortgages would understand our money's frozen, start putting penalties on stuff," Damon said. "The whole financial world is all messed up right now. Hopefully, they will go on a case-by-case basis. I'm not sure the mortgage is going to be paid this month. But hopefully, it's only a couple of days."
Bryan Hoch is a reporter for MLB.com. This story was not subject to the approval of Major League Baseball or its clubs.