Adviser Who Defrauded Mike Tyson Gets 33 Months

Stay up-to-date with the latest developments in securities law through access to both news and all statutes and regulations. Find relevant corporate filings through a searchable EDGAR database. And...

By Phyllis Diamond

An investment adviser to boxer Mike Tyson, former National Basketball Association all-star Glen Rice, and two other professional athletes was sentenced Sept. 6 to 33 months in prison for stealing more than $1 million from his clients ( United States v. Ourand, D.D.C., 1:15-cr-00182, 9/6/17 ).

Brian J. Ourand pleaded guilty earlier this year in the U.S. District Court for the District of Columbia to wire fraud charges. In addition to his prison term, he also was ordered by Judge Tanya S. Chutkan to pay $1,002,390 in restitution and an identical amount as a forfeiture money judgment, prosecutors said in a release. Ourand was an executive for a Washington, D.C.-based company, but was fired in August 2011 after his wrongdoing was discovered, the U.S. Attorney’s Office said. The company reimbursed the athletes for their losses.“Brian Ourand’s greed came at a cost to the people who trusted him with their money,” U.S. Attorney Channing Phillips said in a release. “Instead of wisely managing his clients’ funds, as he had promised to do, he used the money for hotels, health care memberships, rental cars and other personal expenses. Today’s sentence holds him accountable for his larcenous acts.”

In a related Securities and Exchange Commission civil action, Ourand was ordered to pay disgorgement of $671,367 plus prejudgment interest and a $300,000 penalty. He also was barred from the securities industry, prosecutors said. Ourand’s firm and its chief compliance officer separately settled claims they were responsible for compliance failures that allowed Ourand’s misconduct to continue..

To contact the reporter on this story: Phyllis Diamond in Washington at pdiamond@bna.com

To contact the editor responsible for this story: Phyllis Diamond at pdiamond@bna.com

Copyright © 2017 The Bureau of National Affairs, Inc. All Rights Reserved.

Request Securities & Capital Markets on Bloomberg Law