New Orleans Saints quarterback Drew Brees settled a lawsuit in which he accused an ex-teammate of advising him to invest $160,000 in bogus tax credits, according to records in New Orleans federal court.
Brees filed the suit against former Saints long snapper Kevin Houser — licensed to broker securities — in June 2013. A co-plaintiff on Brees’ complaint was ex-Saints receiver David Patten.
There was a settlement conference related to the case Monday, and U.S. District Judge Helen Ginger Berrigan on Wednesday ordered the matter dismissed after all parties “firmly agreed upon a compromise,” documents show. Terms of the settlement were not disclosed.
Brees’ suit alleged Houser didn’t handle the quarterback’s money properly and didn’t disclose he had monetary interests in the investments he was promoting. Other coaches and players sued Houser over the same investment deal.
Aside from Brees and Patten (an investor of $116,000), those Houser reached settlements with include former tight end Jeremy Shockey and coach Sean Payton. Payton went in for $144,000 and Shockey for $80,000.
All of Houser’s accusers said he advised them to invest a total of about $2 million to purchase tax credits that didn’t exist from a movie studio that was inoperative.
The situation resulted in the criminal conviction of the man who used to run Louisiana Film Studios LLC, Wayne Read. Read pleaded guilty to fraud about three months after the Saints won Super Bowl XLIV in 2010; he received a four-year prison sentence after never investing the money to get the tax credits sold to investors.
Investors would’ve lowered their income-tax liability in the state of Louisiana with the credits, federal prosecutors contended.
Brees, who’s making an average annual salary of $20 million under a five-year contract he signed in 2012, and Patten were represented by Daniel Becnel Jr. and Salvadore Christina Jr. Houser, who was with the Saints from 2000-08, was represented by Thomas Roberts and Kevin Miller.
The Associated Press contributed to this report.