Bears’ Nick Foles and NFL players fund controversial loan scheme

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 ahead of a bankruptcy case in October, according to Launderer’s report.

Friday, ESPN’s Mike Fish reported that the players were working with longtime financial adviser Joseph “Joey” Feste. Feste formed Storehouse Lending LLC to fund loans from partner company KJC Auto Title Loan. Court documents showed KJC indirectly received at least $6 million from NFL players through Feste.

The players invested in a now-defunct company that funded a separate business targeting Texans with troubled credit scores. It has been reported that Texans in need of quick cash are pledging their cars as collateral on loans averaging $1,000.

Due to fees and interest well over 300%, borrowers would be willing to pay extra money to repay the loans. Auto title loans are legal in Texas, but are banned in many states because they target people who don’t have access to traditional banking sources.

Feste claimed in court papers that the company was in default on promises to pay investors some $40 million. It is not known how much money the athletes lost.

Foles’ agent Justin Schulman said the quarterback had “no interest in talking about it,” according to ESPN.

Other players linked to Feste’s business were Von Miller, Marques Tuiasosopo, Shane Vereen, Mark Brunell, Derrick Brooks, Jamaal Charles, Matt Flynn, Justin Forsett, Sean Weatherspoon, Renaldo Wynn and Damian Williams. Neither the players nor Feste have been charged with any crimes.

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