Mayweather sues former manager for $175M in fraud lawsuit

Floyd Mayweather filed a lawsuit in New York seeking $175 million from his former investment manager and an associated real estate firm, alleging years of fraud and unauthorized diversions of his money.

The suit names Jona Rechnitz, who managed Mayweather's investments, and Ayal Frist of Florida-based Frist Apex Ventures as defendants, according to ESPN. Mayweather claims Rechnitz built his trust over time to funnel money into accounts controlled by Frist Apex, then moved proceeds without authorization.

Allegations include jewelry pledged at fraction of value

Among the claims: Rechnitz allegedly pledged nearly $100 million worth of Mayweather's jewelry to two Miami jewelers for just $13 million, with much of the collection still held by those jewelers without proper accounting. The suit also alleges a $7.5 million wire for a supposed 12-month investment went to Frist Apex on July 1, 2024, but no investment was made and the principal was never returned. Another $15 million in settlement proceeds from a realty company reportedly went to Frist Apex at Rechnitz's direction.

Mayweather's attorney Leo Jacobs said the conduct alleged in the case demands a full judicial accounting. "We look forward to obtaining that accounting and to recovering every dollar to which our client is entitled," Jacobs told ESPN.

The suit further claims that over $8.8 million from a $16.4 million loan on four Mayweather properties was sent to Frist Apex with no explanation, while only $2.5 million reached Mayweather Promotions. Rechnitz also allegedly diverted a $1 million deposit for a New York property purchase to pay a jeweler instead, causing the deal to collapse.

Morris Missry, representing the defendants, called the claims baseless and promised a vigorous defense. He said documentary evidence will vindicate his clients and expose what he described as Mayweather's gambling issues, spending habits, creditor debts, and IRS tax problems. The IRS filed a nearly $7.3 million lien against Mayweather in March for unpaid taxes from 2018 and 2023. Mayweather is also plaintiff in a separate $340 million lawsuit against Showtime alleging financial fraud.

Source: espn.com