Former Boston Red Sox catcher and two-time World Series winner Doug Mirabelli finally saw a pitch that even he couldn't handle.
In March 2008, the same month that he was released by the Red Sox, Mr. Mirabelli and his wife invested $880,219 with Bank of America Merrill Lynch adviser Phil Scott and took out loans that brought their account value to $1.8 million, according to an article in The New York Times.
Mr. Scott put the money into the Merrill Lynch Phil Scott Team Income Portfolios, a bundle of 33 dividend-paying growth stocks. The loans were made on the condition that the account not dip below $1 million.
By November, the account had dropped below that and was liquidated to cover the loans. The Mirabellis argued in arbitration that Mr. Scott had put his clients' money into unsuitable all-growth-stock investments and improperly briefed the couple on the loans and their requirements.
The arbitration panel ruled in favor of the Mirabellis and awarded them $1.2 million to cover their initial investment, plus all legal fees and arbitration costs.
This was the second defeat for Mr. Scott in the past 12 months, according to the Times article. Merrill has moved to vacate the previous award, and it is unclear if they will do the same with the Mirabellis'.
“We disagree with the panel's decision, given the facts presented in this case,” said Bill Halldin, a spokesman for Merrill. “This account was handled properly during a very difficult time when there was extreme market volatility.”
Mr. Mirabelli earned about $7 million as a major leaguer. He is now a real estate agent in Michigan.
dcubberley@investmentnews.com
