Ex-Harvard Football Player Charged with Defrauding His Former Teammates
The Securities and Exchange Commission (SEC) has accused Nicholas A. Palazzo, a former Harvard football player from the class of 2003, of defrauding investors through his sports-related companies, according to a lawsuit filed in federal court.
Two of the alleged victims were Palazzo’s former Harvard teammates.
Palazzo is accused of using his connections with former teammates to raise funds, which he allegedly spent on personal expenses, including paying off debts, a trip to Disneyland, private school tuition for his children, and rent for a luxury home.
The SEC’s complaint, filed in the U.S. District Court for the Northern District of California, details two primary securities fraud schemes allegedly carried out by Palazzo between October 2019 and December 2023.
By 2017, STACK had accumulated more than $18.6 million in liabilities. Palazzo later sold STACK’s assets to the software company SPay for $9.5 million.
Additionally, STACK’s largest customer, identified in the complaint as “Entity A,” went into receivership in 2019, and its receiver demanded money from STACK. Palazzo allegedly attempted to address this by sending $250,000 to the receiver.
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