Tallahassee, FL – Former attorney Phillip Timothy Howard, 62, admitted in federal court today to running a racketeering scheme that bilked former NFL players out of over $4 million. Howard isn’t facing charges for simply bad investments; the feds say he deliberately misled his clients, turning their retirement savings into a personal slush fund.
The scheme centered around a class-action lawsuit Howard represented former players in. Instead of simply securing a settlement, he allegedly strong-armed them into investing with his own investment companies, promising returns that were never delivered. Federal prosecutors revealed Howard intentionally failed to disclose critical information about the risks involved, and conveniently left out the fact that these companies were deeply entangled with his struggling law practice.
The indictment paints a picture of brazen financial manipulation. Howard didn’t just misrepresent the investments – he commingled funds between his law firm, Howard & Associates, P.A., and his investment vehicles, essentially using the players’ money to keep his practice afloat. Investigators say he fabricated investment statements to cover his tracks, creating the illusion of healthy returns while quietly siphoning off the cash.
This wasn’t a case of a failing business; it was a calculated fraud. The feds uncovered evidence Howard knowingly concealed the criminal backgrounds of associates involved in the investment companies and ignored glaring conflicts of interest. He wasn’t building wealth for his clients; he was building a house of cards on their financial security.
The investigation, a collaborative effort between the FBI, IRS-CI, the Securities and Exchange Commission (SEC), and the Financial Industry Regulatory Authority (FINRA), has been ongoing for some time. Assistant U.S. Attorneys Justin M. Keen and David P. Byron led the prosecution, meticulously building a case that ultimately forced Howard to plead guilty to the racketeering charges.
Howard now faces up to 20 years in federal prison and a potential three years of supervised release following his sentence. While a sentencing date hasn’t been set, the feds are signaling they intend to seek the maximum penalty. This case serves as a stark warning: preying on the trust of vulnerable individuals, especially those who have dedicated their lives to demanding physical labor, will not be tolerated.
The timeline of the scheme reportedly spanned several years, with Howard allegedly beginning to divert funds from the NFL players’ investments as early as [date redacted for brevity]. The investigation revealed a pattern of systematic deception and a callous disregard for the financial well-being of his clients.
The SEC and FINRA played a crucial role in unraveling the complex web of shell companies Howard created to hide the flow of money. Their expertise in financial regulation was instrumental in tracing the stolen funds and exposing the full extent of the fraud. The feds are now working to recover as much of the $4 million as possible to compensate the victims.
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