Reggie Fowler allegedly funded sports league with ill-gotten gains

A superseding indictment filed with the SDNY court Thursday includes a new charge of wire fraud for ex-Minnesota Viking co-owner Reginald Fowler.

Fowler, who is living in Chandler, Ariz., while free on $5 million in bail, currently faces four other charges related to bank fraud and operating an illegal money transmitting business, so this makes for count number five.

According to federal prosecutors, from June 2018 to February 2019, Fowler obtained money through “false and fraudulent pretenses” to fund a professional sports league in connection with his ownership stake in the league.

imagesWhat sports league would that be? The indictment does not tell us. But Fowler invested $25 million in the Alliance of American Football — an attempt to form a new football league — right before its inaugural season and shortly before his arrest on April 30, 2019.

The league ran into problems after withdrawals from Fowler’s domestic and foreign accounts were “held up around Christmas,” freezing a principal source of the league’s funding.

Shortly before then, the Department of Justice froze five U.S. bank accounts—three of them were Fowler’s personal accounts and two were held under Global Trading Solutions LLC, a shell company that he set up.

Global Trading Solutions LLC has been directly linked to Crypto Capital Corp., a Panamanian shadow bank used by Bitfinex and the failed Canadian crypto exchange QuadrigaCX.

Due to money problems, the AAF collapsed on April 2, 2019, and filed for Chapter 7 bankruptcy two weeks later. The league claimed assets of $11.3 million and liabilities of $48.3 million and held just $536,160.68 in cash.

After forgoing a plea deal last month, Fowler is set to go trial on all five counts on April 28.

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