The Malik Report
by George Malik on 09/06/13 at 02:13 PM ET
This story comes to us via RedWingsFeed, and it's...Interesting. Sergei Fedorov once sued his financial manager for mismanaging $40+ million of his investment money, and the Detroit News's Robert Snell reports that Fedorov, who Snell states has *never* been able to collect on a $60 million judgment against Zada, is now helping prosecutors build another case against Zada:
Sergei Fedorov’s financial manager, who allegedly swindled the former Red Wings star out of $43 million, was indicted this week by a federal grand jury in connection with a fraud scheme involving phony Saudi Arabian oil deals. Instead of investing the money, Grosse Pointe Shores resident Joseph Zada allegedly spent more than $20 million bankrolling a lavish lifestyle, including extravagant parties, luxury vehicles and homes in Florida and Michigan, according to the indictment.
Fedorov, who is identified as “S.F.” in court records, factors prominently in the 27-count indictment and is among more than 20 people who invested between 1998-2009allegedly based on Zada’s “materially false statements and omissions of material facts.”
“It’s been a trying and difficult ordeal that Joe Zada put him through but right now I’d say he is doing well,” Fedorov lawyer Brendan Frey told The News on Friday. “He is glad to see Joe finally indicted.”
Zada, 55, faces up to 20 years in prison on mail and wire fraud charges and 10 years on charges that include money laundering and transporting stolen property across state lines. The case is pending in federal court in the Southern District of Florida.
According to the Wednesday indictment, Zada solicited cash from associates, offering investments in oil-ventures and large profits.
“While soliciting money, the defendant told investors elaborate cover stories to justify the lack of verifiable information regarding the proposed investments,” the indictment reads. “For example, the defendant stated that he was being groomed to replace his mentor who was purportedly a member of a secret board of directors that controlled billions of dollars in investments, or that the defendant was a board member of a company that bought and sold oil.”
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The Malik Report is a destination for all things Red Wings-related. I offer biased, perhaps unprofessional-at-times and verbose coverage of my favorite team, their prospects and developmental affiliates. I've joined the Kukla's Korner family with five years of blogging under my belt, and I hope you'll find almost everything you need to follow your Red Wings at a place where all opinions are created equal and we're all friends, talking about hockey and the team we love to follow.