University of Michigan football coach Rich Rodriguez is being sued by an Alabama bank seeking about $3.9 million from Rodriguez related to a real estate transaction made in 2004.
According to court documents, Rodriguez was one of five guarantors linked with the Legends of Blacksburg, an LLC in Virginia that proposed a condominium project and executed a Guaranty Agreement of $26 million to Banc Capital. Rodriguez has not made payments on the loan s principal amount, late fees, or accumulated interest.
Rodriguez s financial advisor, Mike Wilcox of Toledo, says his client is the victim of a Ponzi Scheme.
Coach Rodriguez is the victim of a fraudulent real estate Ponzi Scheme that has unfortunately affected many Americans, Wilcox said in a statement. Several other coaches and prominent individuals are involved in this transaction that was initiated in 2004, prior to my relationship with coach Rodriguez. This is a personal issue, and as coach Rodriguez s financial advisor, I, and his legal counsel will be handling this matter moving forward. We are evaluating legal actions and solutions since the promoter of the scheme is currently awaiting trial on criminal charges.