Drew Brees is suing former teammate Kevin Houser over an investment allegedly gone wrong.
Houser, a player on the New Orleans Saints from 2000 to 2007, allegedly advised Brees to invest in $160,000 in tax credits in a defunct movie studio, Louisiana Film Studios, LLC. The Saints’ quarterback filed the lawsuit in New Orleans federal court on Monday. “The suit filed on Brees’ behalf in federal court claims former Saints long snapper Kevin Houser, a licensed securities broker, mishandled the star quarterback’s money and failed to disclose his own financial interests in the investments he was promoting.”
The lawyer representing Brees said the lawsuit was filed only because out-of-court settlement negotiations didn’t get anywhere. Houser allegedly scammed other Saints players — as well as head coach Sean Payton — some of whom have reached a settlement with him.
Apparently there was no substance behind the tax-avoidance strategy. “The suit also alleges the money for the tax credits went into the film company’s operating account, not escrow. What’s more, Houser is alleged to have known that the film company did not have the money to buy the film credits, which Houser ultimately ‘has failed to deliver,’ per the lawsuit.”
Brees’ lawsuit seeks full restitution, which means he wants all of his money back from the false tax credits, plus other damages.
After pleading guilty in May 2010, the man who ran Louisiana Film Studios was sentenced to four years in prison on fraud charges. “[He] never invested the money necessary to obtain the tax credits he sold to his investors, who wanted to use them to reduce their state income-tax liability, according to federal prosecutors.”
Drew Brees led the Saints to victory in the NFL Super Bowl in 2009 and was named the game’s Most Valuable Player. The seven-time Pro Bowler was originally taken by the San Diego Chargers in the second round of the 2001 NFL Draft.