Nick Foles, NFL players fund controversial loan program originally appeared on NBC Sports Chicago
Investments made by Nick Foles and at least 15 current and former NFL players were used to fund controversial high-interest loans targeting low-income people in Texas prior to an October bankruptcy case, according to Bleacher Report.
On Friday, ESPN's Mike Fish reported the players worked with longtime financial adviser Joseph "Joey" Feste. Feste created the Storehouse Lending LLC to fund the loans for partner company KJC Auto Title Loan. Court documents showed KJC indirectly received at least $6 million from NFL players through Feste.
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The players invested in a now-obsolete company that funded a separate business targeting Texans with troubled credit ratings. It was reported that the Texans who needed quick cash would put up their cars as collateral on loans averaging $1,000.
Due to fees and interest well over 300&, borrowers would agree to pay an additional amount of money to repay the loans. The "auto title loans" are legal in Texas, however they are prohibited in many states because they target people who don't have access to traditional banking sources.
Feste claimed in court filings that the venture was in default of promises to pay in was in default of promises to pay investors some $40 million. It is unknown how much money the athletes lost.
Other players linked to Feste's venture were Von Miller, Marques Tuiasosopo, Shane Vereen, Mark Brunell, Derrick Brooks, Jamaal Charles, Matt Flynn, Justin Forsett, Sean Weatherspoon, Renaldo Wynn and Damian Williams.
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