When ex-Detroit Red Wings star was allegedly duped of $43,000,000 through an insider Ponzi scheme

In May 2015, former Detroit Red Wings center, Sergei Fedorov, emerged victorious in a legal battle against his ex-financial manager, Joseph Zada, who had allegedly swindled him out of a staggering $43 million. With the assistance of a federal appeals court, the U.S. 6th Circuit Court of Appeals ruled decisively against Zada.

They ordered him to pay an astounding $112 million for orchestrating a Ponzi scheme that ensnared numerous unsuspecting victims, including Fedorov, as well as a horse trainer, a plastic surgeon, and several firefighters.

The saga began six years prior when the Free Press first exposed Fedorov's claims of being duped by Zada. Over an 11-year period, Zada purported to be a wealthy businessman with ties to Saudi Arabian royalty while embezzling millions from the hockey star.

Zada had been banking on the 6th Circuit to overturn a prior lower court ruling, which had mandated him to pay $56 million in damages, in addition to a $56 million civil penalty for orchestrating the fraudulent scheme.

The Ponzi scheme had garnered the attention of the U.S. Securities Exchange Commission (SEC), leading to a civil complaint against Zada in 2010, alleging violations of two federal securities laws. A federal judge sided with the SEC, and the 6th Circuit agreed, noting the "undisputed evidence" that Zada had been running the Ponzi scheme.

For the Detroit Red Wings star, the court's ruling was a momentous victory that went beyond mere financial compensation. It brought closure to a long and arduous legal battle, providing vindication for the former Red Wings star.

As news of the court's decision became public, the hockey world celebrated Fedorov's triumph over financial deception.

How Detroit Red Wings center Sergei Fedorov got scammed initially

The year 2002 marked a significant period for Sergei Fedorov, the talented Detroit Red Wings hockey star. His exceptional skating skills led the NHL team to its third Stanley Cup championship since he joined in 1990.

Additionally, he celebrated his relationship with professional tennis icon Anna Kournikova, eventually marrying her. Alongside these achievements, Fedorov confided in Joseph Zada, a part-time high-flyer from Wellington, believing he would help multiply his earnings.

However, the tale took a distressing turn as his marriage crumbled and he faced multiple trades. Ultimately, Fedorov's hopes were shattered when he discovered that the considerable $40 million he had entrusted to Zada vanished. Despite the triumphs on the ice and personal milestones, Fedorov's financial journey was unfortunate.