Rick Fox sues Amit Raizada and Stratton Sclavos for fraud and misuse of Echo Fox money
In a lawsuit filed in California Superior Court, Los Angeles this week (case number (#19STCV34802), former NBA star and Echo Fox Founder Rick Fox says his Echo Fox partners Amit Raizada and Stratton Sclavos took part in self-dealing, fraud, intimidation, drug-use and misusing investor money for their own financial gains.
Raizada initially duped Fox with a heartbreaking story, begging for his mentorship and help, according to the complaint. Once he had earned Fox’s trust, Raizada allegedly took advantage of Fox’s personal connections, fame and influence for his own benefit.
Rick Fox attending “Susan G. Komen’s 8th Annual Fashion For The Cure” event – Hollywood, CA on Sept. 24, 2009 – Photo by Glenn Francis of www.PacificProDigital.com
Raizada also brought in former San Jose Sharks co-owner Stratton Sclavos as an investor in Echo Fox, essentially turning over the controls to Sclavos after convincing Fox to let the two of them run everything. And according to the lawsuit, “Sclavos has become indebted – and effectively indentured – to Raizada to support his drug-fueled lifestyle.”
The lawsuit also alleges that money from major investors was illegally misappropriated. “As soon as the Yankees and other Vision Esports funds were raised from investors such as the St. Louis Cardinals, the Scripps Family, the Disney family office, the Edmonton Oilers and Kevin Durant, Sclavos and Raizada instructed one of the companies funded by those investments to cause a loan of $2,000,000 to be made to Sclavos for his personal use,” states the lawsuit.
According to the lawsuit, over time Raizada’s and Sclavos’ fraudulent ways became clear. “It took time to peel away the layers of lies and deception, but Fox eventually realized that he had gotten into business with two very bad guys – Raizada and Sclavos. As is now evident, Raizada began manipulating numbers behind the scenes to his benefit while Fox engaged publicly as the face of esports,” says the lawsuit.
The detailed complaint asserts that Raizada manipulated Fox by creating complex financial structures that cut out his various business partners and drove money to himself. “Raizada’s fraudulent activity included self-dealing where he and Sclavos put Echo Fox into a tailspin by controlling the company’s debt. And in another example, Sclavos and Raizada changed the company’s cash waterfall by altering the partnership agreement to reduce proceeds to certain investors and position Raizada and Sclavos with options for personal gain by removing the general partner,” states the lawsuit.
Following the filing of the lawsuit Rick Fox stated: “How can someone commit fraud again and again without facing repercussions? All you have to do is Google – Amit Raizada lawsuits – and it’s all there. I am calling on regulators and law enforcement to immediately look into Amit Raizada and his illegal, deceptive business practices. I want to make sure I’m the last victim.”
The lawsuit reveals that Raizada used offensive, racist language with Fox and former Echo Fox CEO Jace Hall, calling both of them the N-word. Racist remarks by Raizada ultimately cost Echo Fox its LCS spot, just sold by Riot Games to Evil Geniuses, according to media reports.
In addition, Raizada even threatened Fox’s family, according to the complaint. When Fox stated that he wished to leave Echo Fox to continue to work on other projects with Hall, Raizada allegedly sent him a text message stating that he would “PERSONALLY F-CK HIM AND HIS FAMILY FOR THE REST OF MY LIFE IN ANY WAY POSSIBLE.”
“I cannot let Amit Raizada continue to hide behind fake SEO articles and outrageous lies. I hope that this lawsuit and the facts it reveals will serve as a warning to others about the dangers of doing business with him,” said Fox.
