Bears’ Nick Foles and NFL players fund controversial loan scheme
Investments made by Nick Foles and at least 15 current and former NFL players were used to fund controversial high-interest loans targeting low-income people in Texas ahead of a bankruptcy case in October, according to Bleacher Report.
ESPN’s Mike Fish reported on Friday that the players had worked with longtime financial adviser Joseph “Joey” Feste. Feste established Storehouse Lending LLC to finance loans from partner company KJC Auto Title Loan. Court documents have shown that KJC indirectly received at least $ 6 million from NFL players via Feste.
The actors invested in a now defunct company that funded a separate venture targeting Texans with struggling credit scores. It was reported that Texans who needed quick cash would put their cars as collateral on loans of $ 1,000 on average.
Due to fees and interest well over 300%, borrowers would agree to pay an additional amount to repay the loans. Auto title loans are legal in Texas, but they are prohibited in many states because they target people who do not have access to traditional banking sources.
Feste claimed in court documents that the company broke promises to pay investors some $ 40 million. It is not known how much money the athletes lost.
Foles agent Justin Schulman said the quarterback had “no interest in talking about it,” according to ESPN.
Other players linked to the Feste business were Von Miller, Marques Tuiasosopo, Shane Vereen, Mark Brunell, Derrick Brooks, Jamaal Charles, Matt Flynn, Justin Forsett, Sean Weatherspoon, Renaldo Wynn and Damian Williams. Neither the players nor Feste have been charged with any crimes.
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