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Undefeated American boxing legend Floyd Mayweather is suing his former investment and real estate advisors of orchestrating a multi-year fraud scheme, claiming damages worth at least US$175 million.
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Floyd Mayweather holds a basket of cash upon arriving at Robert Mugabe Airport in Harare, Zimbabwe, on July 13, 2023. Photo by AP |
In the civil complaint filed in a New York state court, Mayweather alleges that Jona Rechnitz, his former trusted manager and close associate, abused his position to secretly divert the boxer's funds. The lawsuit claims Rechnitz funneled the money into accounts linked to Frist Apex Ventures, a Florida-based real estate and investment firm managed by co-defendant Ayal Frist, ESPN reported.
The filing details a series of alleged fraudulent transactions, including a $7.5 million wire transfer made for an investment that never materialized and never returned. The case also alleges that tens of millions of dollars in real estate settlements, loans, and refinancing proceeds were transferred to Frist Apex without Mayweather's authorization or a clear explanation.
Mayweather also claims that nearly $100 million worth of his personal jewelry was pledged as collateral to jewelers in exchange for a fraction of its value, with a substantial portion of the pieces still missing and no clear accounting provided.
He alleges sketchy dealings regarding his 1996 Gulfstream G-IV private jet. The boxer claims he does not know who acquired the jet and that the proceeds were diverted to other financial obligations instead of being paid to him.
In addition to Rechnitz and Frist, the lawsuit names Alexander Seligson, an attorney who handled the refinancing of one of Mayweather's properties, in connection with the alleged mishandling of funds.
The complaint further states that Frist falsely portrayed himself as the manager of Vada Properties, Mayweather's real estate investment company, despite never being officially appointed. The lawsuit highlights that Vada's website at one point misleadingly listed Frist as its CEO.
Leo Jacobs, the attorney representing Mayweather, stated that the allegations regarding the diversion of settlement payments, refinancing funds and real estate cash flows demand a full clarification in court. He asserted that they will pursue a thorough forensic investigation to recover all the funds his client has lost.
This massive fraud claim adds to a growing list of Mayweather's current legal and financial battles. He is currently the plaintiff in a separate $340 million lawsuit filed earlier this year, which alleges that Showtime engaged in financial misappropriation during their broadcasting partnership.
Additionally, the IRS recently filed a $7.3 million tax lien against the boxer for unpaid taxes from 2018 and 2023.
Mayweather is widely regarded as one of the greatest boxers of all time, having retired with a perfect 50-0 professional record and world championships across five different weight classes. He was the main draw in four of the five highest-grossing fights in history, taking on Oscar De La Hoya, Canelo Alvarez, Manny Pacquiao, and Conor McGregor. His 2015 bout against Pacquiao alone reportedly earned him over $300 million.
At the peak of his career, Mayweather generated approximately $2.7 billion in pay-per-view revenue and pocketed over $1.1 billion in prize money. According to Sportico, the American boxer's total career earnings, adjusted for inflation, sit at around $1.57 billion, cementing his status as one of the highest-earning athletes in modern sports history.
