Mike Sweeney, a five-time Major League Baseball all-star, has sued UBS Financial Services and his broker Ralph A. Jackson, III for investment losses. The lawsuit filed in Los Angeles Superior Court alleges that UBS and Jackson engaged in fraud, breach of fiduciary duty, negligent representation, and unfair business practices resulting in a loss of $4.9 million of the $6.85 million entrusted to the defendants by Sweeney.
According to InvestmentNews, Sweeney claims that between 2002 and 2007, Jackson systematically converted Sweeney’s portfolio from a majority of municipal bonds to primarily private equity investments. In his Complaint, Sweeney alleged that Jackson made material misrepresentations concerning the risk and suitability of the private placements, which Sweeney, an unsophisticated investor with only a high school education, relied on to his detriment.
In addition to the $4.9 million of investment losses, Sweeney is seeking the return of $2.7 million he alleges Jackson invested in two other private placements without his knowledge or permission. Sweeney has also made claims for the disgorgement of fees and commissions paid to UBS and Jackson, lost opportunity damages, and punitive damages.
Mike Sweeney spent the majority of his 16 year MLB career playing for the Kansas City Royals. He also played for the Oakland A’s, Seattle Mariners and Philadelphia Phillies before retiring in 2011.