Businessman convicted of defrauding Dwight Howard, Chandler Parsons of $8M
Former NBA star Dwight Howard recently faced a shocking turn of events in his pursuit of owning a stake in the WNBA’s Atlanta Dream. Calvin Darden Jr., a businessman, was convicted of defrauding Howard in a scheme that led to a significant financial loss for the basketball player. This case highlights the risks associated with high-profile investments and the importance of due diligence.
The fraudulent scheme
On Oct. 4, a jury found Calvin Darden Jr. guilty after Howard testified in a New York City trial. Howard had invested a staggering $7 million, believing it was going towards acquiring a stake in the Atlanta Dream. Instead, Darden misappropriated the funds for personal luxuries and extravagant purchases.
Details of the conviction
Prosecutors revealed that Darden spent approximately $6.1 million of the funds he received from Howard on various luxury items. His expenditures included: two cars costing $500,000, a piano purchased for $110,000, a $765,000 down payment on a $3.7 million home, luxury watches totaling $90,000, home upgrades costing $500,000 and art pieces worth hundreds of thousands of dollars.
As a result of his fraudulent activities, Darden is facing a prison sentence ranging from 11 to 14 years, with sentencing scheduled for next year. Prosecutors are also seeking to seize Darden’s assets, including his Atlanta home and the luxury items he purchased with Howard’s money.
The background of the investment
The fraudulent investment opportunity arose during a time when the Atlanta Dream was up for sale. At that time, the team was owned by former Republican U.S. Senator Kelly Loeffler. In 2021, the Dream was sold to a three-member investor group, which included former WNBA player Renee Montgomery.
Darden’s previous convictions
This is not the first time Darden has faced legal troubles. He was previously convicted in another scheme where he collaborated with a sports agent to defraud former NBA forward Chandler Parsons. In that case, Darden convinced Parsons to send $1 million under the pretense that the funds would support the development of current NBA player James Wiseman.
Howard’s new ventures
Despite the setback with the Atlanta Dream investment, Howard has not given up on his dream of owning a professional basketball team. Earlier this year, it was reported that he became a part-owner of a Taiwanese basketball league and one of its teams. This new venture demonstrates Howard’s resilience and commitment to his aspirations in the world of basketball.
The conviction of Darden Jr. serves as a cautionary tale for athletes and investors alike. It underscores the importance of thorough vetting and the potential dangers of trusting individuals without proper scrutiny. As Howard moves forward with his basketball ambitions, this experience may serve as a valuable lesson in the complexities of sports investments.
