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Hawaii 5-0
07-12-2012, 05:50 PM
Foote says hes a victim of six-figure fraud

Posted by Mike Florio on July 12, 2012

http://nbcprofootballtalk.files.wordpress.com/2012/07/610x-110.jpg?w=250

Larry Foote has spent 11 seasons in the NFL. He may need to stick around a few more years.

According to the Associated Press, the Steelers linebacker claims that he was tricked into investing more than $400,000 in a Michigan valet service.

In a lawsuit filed Thursday, Foote says that he was approached in 2010 by one of two persons who claimed that money was needed to fund major valet contracts.

Foote is due to earn a base salary of $3 million in 2012.

http://profootballtalk.nbcsports.com/2012/07/12/foote-says-hes-a-victim-of-six-figure-fraud/

Riddle_Of_Steel
07-12-2012, 07:18 PM
Folks are going to jump all over the "NFL players are morons" sentiment in a second, but you have to keep in mind-- these players have millions of dollars. You don't just keep that tucked under your matress or put it in a safe-deposit box, you invest it.

There are more scams and tricksters out there tan you can shake a finger at. There is a reason why all of the lottery winners from the last decade are all broke.

Curtain_of_Steel
07-12-2012, 08:37 PM
400k to invest in a valet service?

Equipment needed:

Uniforms
Signs
Umbrellas
Key box.

For 400k
Thats a lot ot
Uniforms
Signs
Umbrellas
Key box.

I just hired a professional Valte service for a graduation party. 420.00 for 3 guys for 9 hours. So investing 400k seems quite stupid to me to think the risk versus reward was a good one.

$400,000 tax write off, he loses about 225k.

MACH1
07-12-2012, 09:31 PM
400k to invest in a valet service?

Equipment needed:

Uniforms
Signs
Umbrellas
Key box.

For 400k
Thats a lot ot
Uniforms
Signs
Umbrellas
Key box.

I just hired a professional Valte service for a graduation party. 420.00 for 3 guys for 9 hours. So investing 400k seems quite stupid to me to think the risk versus reward was a good one.

$400,000 tax write off, he loses about 225k.

You may want to add Payroll, unemployment taxes, workmans comp insurance, payroll taxes state and federal to that list.

Curtain_of_Steel
07-12-2012, 09:56 PM
Really?

Those fee's are "incurred" upon work being booked and completed. Last I check you do not prepay workers before the function is paid for. Valet would be 50% up front pay from the function and balance paid the day of.
So providing the fee's for each function covered the expenses to pay the workers, there should not be an issue.

Now they certainly could have contracts with restuarants etc, where as they may be paid weekly, bi weekly or monthly. But the first 2 options would not be effected, the monthly would where they may need cash. But its still parties booked and or resturant contracts, its a rather simple business model per say.

Apparently it was a pure scam and Larry made a bad deal without thinking and looking at the bigger risk vs reward plan.

MACH1
07-13-2012, 12:31 AM
:doh:



So you don't pay your employees for being on the job for 8 hours a day? Only when and if they park a car?

If it was a legit business might want to add some kind of liability insurance to the list also, you know just in case an employee incurred wrecking the car while parking.

The only way to get around of some of that is to have zero employees and run the thing by yourself. With $400 G investment I highly doubt it was a one man show.

Steelers>NFL
07-13-2012, 09:07 AM
I thought he was smarter than that!!!! Numb-nuts!

El-Gonzo Jackson
07-13-2012, 09:44 AM
Drop in the bucket compared to Curt Schilling. Some of these guys should just invest in bonds.

http://www.boston.com/businessupdates/2012/06/22/curt-schilling-tells-weei-radio-show-that-invested-more-than-his-video-game-firm/v7VtA4ZDu2zdyH2OhS7eaK/story.html

Fire Arians
07-13-2012, 02:24 PM
hello i am nigerian prince!

Bayz101
07-13-2012, 02:29 PM
hello i am nigerian prince!

:sofunny:

Curtain_of_Steel
07-13-2012, 10:04 PM
Mach:

Typically this industry is a contract industry. Restuarants, night clubs, private parties contract the valet service to service their business and parties. The employees arent standard weekly employees. They may sign a contract for X weeks. Being paid weekly.

Ex: Restaurant 1 signs a deal to have valet service friday and saturday nights. the cost is X. regardless of 1 car or 500 cars. Most establishments know within reason their traffic flow. These are generally part time workers thats it. The contract should be paid at weeks end or upfront for parties. You pay your employees every 2 weeks, you should never be out of pocket for payroll from the valets.

So you gear your employees to the contracts you have. They flow in and out, its not like you need a rocket scientist to park cars. They mainly need to know how to drive.lol Insurance isn;t to bad, as its based on revenue, so it grows with your sales, all projections and actuals.

Larry was just fleeced and obviously did a bad deal. But I just dont see where he couldve liked this deal from a risk vs reward standpoint. 400k is a lg number for that business. Of course on the other side of the coin, he could've invested his money with Charlie Batch, lol

MACH1
07-14-2012, 03:38 AM
Mach:

Typically this industry is a contract industry. Restuarants, night clubs, private parties contract the valet service to service their business and parties. The employees arent standard weekly employees. They may sign a contract for X weeks. Being paid weekly.

Ex: Restaurant 1 signs a deal to have valet service friday and saturday nights. the cost is X. regardless of 1 car or 500 cars. Most establishments know within reason their traffic flow. These are generally part time workers thats it. The contract should be paid at weeks end or upfront for parties. You pay your employees every 2 weeks, you should never be out of pocket for payroll from the valets.

So you gear your employees to the contracts you have. They flow in and out, its not like you need a rocket scientist to park cars. They mainly need to know how to drive.lol Insurance isn;t to bad, as its based on revenue, so it grows with your sales, all projections and actuals.

Larry was just fleeced and obviously did a bad deal. But I just dont see where he couldve liked this deal from a risk vs reward standpoint. 400k is a lg number for that business. Of course on the other side of the coin, he could've invested his money with Charlie Batch, lol

Fair enough.

But part of owning a business is paying the insurance, taxes, unemployment and payroll. Whether its a contact business or not, your still a business and it all cost a ton of money.

Also whatever the employee pays in futa and fica the employer has to match. All I'm saying as an employer there are a lot of costs that people don't know or think about that comes with running a business.

Curtain_of_Steel
07-14-2012, 09:43 AM
Mach:

No doubt, I own 4 business's here, yesterday just acquired the 4th. Im hoping between my accountantsetc the spreadsheets and DD are correct, lol

But a side from expenses, like office, and insurance for a valet service, there really isn't a lot. The matching tax, workmans comp etc would be factored into the billables, which he should receive prior too paying Obama's people. These valet services don't really give much terms as far as payables go. Private functions are up front. Too many retuarants etc can close up shop real fast. Those guys just seen a sucker and took him for his investment.The bigger problem, there realy are no assets in a valet service, it would be all good will. So that money is gone, other than the tax write offs he would get.
If it was a start up, than the 400k went to salaries to pay the people to "try" to get new business. If itwas an existing business, than they just took his cash.

When I quoted my my daughters party at my house, I found out this is an extremely competitive business biz, with large ranges for the same service. I had quotes ranging from 420 for 3 guys for 8-9 hours, to 900, for 3 guys 8-9 hours. I seen nothing that the 420 shorted me on. lol One was 600.00. Who would you use? My only concern was if their was several trailers was around the corner waiting to grab 50 cars, LOL

MACH1
07-14-2012, 12:17 PM
Mach:

No doubt, I own 4 business's here, yesterday just acquired the 4th. Im hoping between my accountantsetc the spreadsheets and DD are correct, lol

But a side from expenses, like office, and insurance for a valet service, there really isn't a lot. The matching tax, workmans comp etc would be factored into the billables, which he should receive prior too paying Obama's people. These valet services don't really give much terms as far as payables go. Private functions are up front. Too many retuarants etc can close up shop real fast. Those guys just seen a sucker and took him for his investment.The bigger problem, there realy are no assets in a valet service, it would be all good will. So that money is gone, other than the tax write offs he would get.
If it was a start up, than the 400k went to salaries to pay the people to "try" to get new business. If itwas an existing business, than they just took his cash.

When I quoted my my daughters party at my house, I found out this is an extremely competitive business biz, with large ranges for the same service. I had quotes ranging from 420 for 3 guys for 8-9 hours, to 900, for 3 guys 8-9 hours. I seen nothing that the 420 shorted me on. lol One was 600.00. Who would you use? My only concern was if their was several trailers was around the corner waiting to grab 50 cars, LOL

:chuckle:

Or dive em like you stole em valets.
See in idaho we don't have a lot of need for a valet service. We just park in the pasture next door. :sofunny:

Curtain_of_Steel
07-14-2012, 04:07 PM
Sort of same here in NJ. Atleast my part. I have a 2 acre field next to our backyard yard that isnt fenced in, we use it for parking, soccer etc. But it was nice and green and for 420.00 I didnt want my guests F ing up my lawn after they have been drinking. Of course than the drought comes it it looks like your field in idaho now, LOL

Justin Otstott
07-14-2012, 06:21 PM
Not good with business, smh such a fail. Hope he gets the issue fixed.

LVSteelersfan
07-17-2012, 07:43 PM
Unfortunately when you have a lot of money scam artists come out of the woodwork. The really good ones really sound sincere and you should be able to trust them from their slick talk. I don't feel like these athletes are stupid for making bad decisions. We all make bad decisions. Their decisions just cost them a lot more money.

madtowndrunkard
07-18-2012, 08:14 PM
That's why most wealthy people use reputable investment firms to handle their money....typically in a blend of stocks, bonds, securities etc. Last time I talked to my broker there wasn't a "vallet service" option to put $400K into. That's sounds more risky then opening a restaurant or buying Russian real estate. He probably would have been better off buying Iraqi currency. Stupidity is what that is.