Stanford scandal hits Damon, Nady

Feb 20, 2009 - 10:40 PM TAMPA, Florida (Ticker) -- The Stanford Financial Group scandal has affected a pair of New York Yankees.

Johnny Damon and Xavier Nady have had their finances frozen in the alleged $8 billion fraud scheme involving financier Robert Allen Stanford.

"I can't pay my bills right now," said Damon, who is making $13 million this season. "That started on Tuesday. I had to pay for a trainer for working out during the offseason. I told him, 'Just hold on for a little bit and hopefully all this stuff gets resolved.'"

Nady, earning $6.55 million this season, is in a similar situation as Damon.

"I'm affected in some ways. I have the same (advisor) as Johnny," Nady said. "He said I didn't have money with Stanford (investments). But all my credit card accounts are frozen right now because of that situation. I'm trying to get an apartment in New York. I can't put a credit card down to hold it."

On Monday, the Securities and Exchange Commission froze all assets of three entities -- Stanford International Bank, Stanford Group Co., and Stanford Capital Management -- all managed by Robert Allen Stanford. Those were the only three entities whose assets were frozen by the SEC.

Scott Boras, who represents Damon and Nady, said his clients have no reason to worry about losing their money.

"Our personal-management auditors have looked into the financial elements of it," Boras told Foxsports.com. "None of our clients is in financial jeopardy."

According to Foxsports, Damon and Nady said they were told by their financial advisors that the matter could be resolved within a few days. Damon also said he was told that his money was insured by the Bank of New York.