Major League Baseball
Stanford scandal ensnares Yankees' Damon, Nady
Major League Baseball

Stanford scandal ensnares Yankees' Damon, Nady

Published Feb. 21, 2009 7:07 a.m. ET

Johnny Damon, earning $13 million this season, cannot pay his bills.

Xavier Nady, earning $6.55 million, cannot purchase an apartment in New York.

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The Stanford Financial Group scandal extends to Major League Baseball.

The issues facing Damon and Nady — both New York Yankees outfielders and both clients of agent Scott Boras — stem from the alleged $8 billion fraud scheme involving billionaire financier Robert Allen Stanford.

Damon, 35, and Nady, 30, told on Friday morning that their finances are frozen because of money they have with a Stanford company.

On Monday, the Securities and Exchange Commission froze all assets of three entities — Stanford International Bank, Stanford Group Co., and Stanford Capital Management — all managed by Robert Allen Stanford. Those were the only three entities whose assets were frozen, according to the SEC filing.

"I can't pay bills right now," Damon said at the Yankees' spring training facility in Tampa. "That started on Tuesday. I had to pay a trainer for working out during the offseason. I told him, 'Just hold on for a little bit and hopefully all this stuff gets resolved.'"

Nady faces similar concerns.

"I'm affected in some ways. I have the same (advisor) as Johnny," Nady said. "He said I didn't have money with Stanford (investments). But all my credit card accounts are frozen right now because of that situation. I'm trying to get an apartment in New York. I can't put a credit card down to hold it."

Boras said his clients have no reason to worry about losing money.


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