NBA legend Charles Barkley says he lost $4 million to an investment scheme hatched by Alabama lawyer Donald Watkins Sr. and his son, Donald Watkins Jr., who are currently on trial. Watkins and his son were indicted last year on charges of wire fraud, bank fraud, and conspiracy to commit those crimes.
The father and son team received millions from Barkley and other pro athletes, including ex-NFL players Takeo Spikes and Carlos Emmons, many of whom believed they were investing in a biofuels company called Masada. According to a lawsuit filed by the Securities and Exchange Commission, investors were led to believe that Masada was worth billions, and was on the verge of being sold to Waste Management.
Barkley’s former financial adviser, Glenn Guthrie, testified in court on Friday that Barkley invested more than $6 million in total with Watkins.
Via AL.com:
“Guthrie said Barkley called one morning said he wanted Guthrie to wire a million dollars to Watkins Sr., and that Watkins Jr. would call with wiring instructions. According to Guthrie, Barkley said “This is mine and this is my investment. I want to do it.”
Documents shown in court show Barkley Enterprises made seven investments or loans with Watkins Sr. and his various companies, totaling $6.15 million. Those payments began in 2007, and ended in 2014. Barkley Enterprises has received none of that investment back nor any loan repayments.”
In a deposition, Barkley said he was shocked by the outcome of his investments.
Via AL.com:
“I haven’t gotten a dime back and we are proceeding — this thing has been a shock to my system to be honest with you. I consider that Donald has always been a friend to me and this whole situation is really unfortunate. Because I’ve lost a lot of money”
