Mayweather sues former associate for $175M in fraud case

Floyd Mayweather filed a lawsuit in New York court seeking $175 million from his former investment manager and real estate advisor, alleging a multi-year fraud scheme that diverted tens of millions of dollars without authorization.

The suit names Jona Rechnitz, who served as Mayweather's manager, and Ayal Frist, who ran Florida-based Frist Apex Ventures, as primary defendants. According to ESPN's reporting, Mayweather claims Rechnitz built trust over several years to manipulate the boxing legend into funneling money into accounts controlled by Frist Apex. Attorney Alexander Seligson, who handled refinancing on a Mayweather property, is also listed as a defendant.

Details of the alleged diversions

The complaint details a series of unauthorized transactions. A $7.5 million wire for a 12-month investment in July 2024 reportedly vanished with no investment made and no principal returned. Another $15 million in settlement proceeds from a realty company was allegedly redirected to Frist Apex at Rechnitz's direction. More than $8.8 million of a $16.4 million loan on four Mayweather properties ended up with Frist Apex without explanation, with only $2.5 million reaching Mayweather Promotions. A separate refinance of a Las Vegas property saw $2.1 million of the $8.2 million total sent to Frist Apex.

The suit also describes how Rechnitz allegedly diverted a $1 million deposit Mayweather intended for a New York real estate purchase to pay a jeweler instead, causing the deal to collapse. In a separate transaction, Rechnitz reportedly pledged nearly $100 million in Mayweather's jewelry to two Miami jewelers for only $13 million, with a substantial portion still held by the jewelers and no accounting provided. "The conduct alleged in this pleading — including the diversion of settlement proceeds, refinance proceeds, and recurring real estate distributions to accounts controlled by Jona Rechnitz through Frist Apex Ventures — demands a full judicial accounting," Mayweather's attorney Leo Jacobs said in a statement.

The lawsuit further claims Mayweather signed a bill of sale for his 1996 Gulfstream G-IV at Rechnitz's urging with no purchaser listed, and that the proceeds were diverted to Frist Apex for a Bugatti-related obligation without Mayweather receiving any funds. Frist allegedly misrepresented himself as a manager and later CEO of Vada Properties, Mayweather's real estate investment firm, without ever being appointed to either role.

Mayweather is a defendant in several other lawsuits alleging money owed, some naming Rechnitz as co-defendant. He is also pursuing a separate $340 million suit against Showtime alleging financial fraud. The IRS filed a nearly $7.3 million lien against him in March for unpaid taxes from 2018 and 2023. Messages left with Rechnitz, Frist, and Seligson were not returned.

Source: espn.com