Peter Laviolette, who up until this week was the head coach of the
Philadelphia Flyers, has filed a lawsuit against Bank of America seeking $3 million over claims that the financial institution lured he and his wife Kristen into a get-rich-quick scheme, according to news reports.
Laviolette, who was fired Monday from his position as coach of Philadelphia’s professional hockey team after close to four years in that role, claims that Bank of America approached the couple with an investment proposal in 2006, just after the then-coach of the Carolina Hurricanes led that hockey team to a Stanley Cup championship, according to Courthouse News Service, which reported on the lawsuit, filed in Palm Beach County (Fla.) Circuit Court.
Laviolette and his wife allege that the bank advised the couple to “leverage all of the available equity in the properties [they own], including their primary residence, through several high-interest loans and then to invest these loan proceeds in other purportedly sound, but ultimately high-risk investments,” the lawsuit states, according to Courthouse News Service.
The complaint mentions a 12-page brochure in which Bank of America projected property and investment values to substantiate its return on the investment claims.
One document provided by the bank, CNS reported, projected that by leveraging the three properties the Laviolette’s owned in North Carolina and Florida, the couple would increase their net worth resulting from the assets from more than $8 million after 30 years to more than $22 million, a gain of $14 million.
The investments were reported to have been managed by Banc of America Securities, which is now a division of Bank of America.
The Laviolettes claim that the projections relied on artificially inflated property values and an unreasonable rate of return on the investments, CNS reported, citing the lawsuit.
Laviolette and his wife seek at least $3 million in damages for the alleged fraud perpetuated by the defendant.
The complaint was filed on Sept. 25 by attorney Eric Horbey of the West Palm Beach, Fla. firm of Lazer, Aptheker, Rosella and Yedid.
According to news reports, Laviolette was fired Monday morning. He was hired by the team back in early 2009.