Late money manager wrote coach into life insurance
The Texas financial adviser who committed suicide last year as
federal investigators probed his management of college coaches’
money changed his life insurance less than a month before his death
to make former University of Houston football coach Bill Yeoman the
beneficiary of $1.8 million.
The decision by David Salinas could have allowed Yeoman to
recoup his losses in what the Securities and Exchange Commission
alleges was a $39 million Ponzi scheme, but the Hall of Fame coach
declined to claim the money.
The 11th-hour change in Salinas’ life insurance, detailed in a
court document filed this week, suggests that the prominent Houston
booster could have felt guilty about his dealings with Yeoman, who
turns 85 in December.
”I think he thought, `Well, I’ll reimburse Coach because I
screwed him and he’s 85,”’ said Bill Yeoman Jr., the coach’s
eldest son. ”But, of course, he screwed everybody.”
The elder Yeoman, who coached the Cougars from 1962 to 1986 and
still works for the university in a fund-raising capacity, declined
to be interviewed, referring all comment to his son.
Salinas, 60, was found dead in his suburban Houston home of a
self-inflicted gunshot wound last July. Two weeks later, the SEC
filed a lawsuit alleging he and an associate sold bogus corporate
bonds in a scheme that defrauded more than 100 investors, including
several high-profile college coaches.
Bill Yeoman Jr., a retired Harris County justice of the peace,
said his father invested approximately $1.2 million with Salinas
starting in the mid-1980s.
Although most of the investment appears to be lost, the coach
never considered keeping the insurance benefit, the son said.
Instead, he allowed it to be turned over to the receiver appointed
by the SEC to recover funds for Salinas’ investors and
”Dad just said, `That’s not something I’m entitled to unless
everybody else gets their money back,”’ Bill Yeoman Jr. said.
In a court filing, the receiver, Steven Harr, said Salinas
revised a $3 million life insurance policy last June 25, three
weeks before his suicide, designating Yeoman and two others as
beneficiaries. All three were victims of the alleged fraud,
according to the document.
Yeoman and another beneficiary readily agreed to give up their
interests in the money, the filing says. But the third did not,
citing the fact that the amount he was due to receive – $600,000 –
was roughly equal to what he’d lost by investing with Salinas,
according to the document.
Harr received the court’s approval for a compromise that would
pay the investor, a former Houston-area car dealer, $20,000 in
exchange for giving up his right to the $600,000.
Salinas was well known in college basketball circles as the
founder of an AAU program for high school stars, and many of his
clients were coaches.
Among the basketball coaches who have lost significant amounts
of money because of investments with Salinas are Texas Tech’s Billy
Gillispie, Baylor’s Scott Drew, former Arizona coach Lute Olson and
former Utah coach Ray Giacoletti, now an assistant at Gonzaga.
Baylor football coach Art Briles, who previously coached at
Houston, also invested.
Briles told the Houston Chronicle last July that his
relationship with Yeoman, his college coach, was among the reasons
he trusted Salinas with his money.
”Knowing that coach Yeoman was involved … and other people in
Houston who are not coaches who I love and trust … made us go
over (to Salinas),” Briles said.
Yeoman is the winningest coach in Houston history with a record
of 160-108-8, and he’s known for revolutionizing offensive football
by developing the veer offense. He was inducted into the College
Football Hall of Fame in 2001.
Bill Yeoman Jr. said his father, like other coaches, failed to
notice that Salinas wasn’t licensed to sell securities and other
”He just kind of believed (Salinas) and didn’t do a whole lot
of due diligence,” the son said. ”Football was his life, and he
just kind of kept it that way.”