Detmer's trust not so mystifying
I read with true sadness the news that ex-BYU quarterback Ty Detmer was among the investors who lost money in what federal regulators are saying was “a $50 million shell game.”
Some investors reportedly lost their life savings. It’s hard to imagine putting everything you own in the hands of one person — but not really. Stories say Detmer and several others were LDS members who put their faith in another member of their congregation. Detmer reportedly lost $2 million.
This is where I can see how it happens. If you invest, you have to trust someone. Why not someone you know from your LDS ward or stake? Someone who seems to share the same values and goals? Someone who was recommended by others of the congregation as an expert. I can see it.
Maybe Kurt Barton, the head of Triton Financial, didn’t do anything purposely — though that’s not the picture prosecutors are painting. But the one undeniable fact is that people trusted him and he didn’t deliver.
I don’t blame Detmer or anyone else for trusting Barton. They weren’t financial experts. He was, supposedly.
Athletes are easy targets. They make great money for a short period. The smart ones are looking for ways to keep money coming in after their careers end, and a good way is through investing it, rather than spending it all as they go. When I interviewed ex-Ute Luther Elliss in the spring, he talked about losing his money and his home after earning approximately $11 million in the NFL. Among the big factors he said were bad investments.
Some say investors like Detmer and Elliss are dumb for doing so. I actually think those looking to invest are probably some of the smarter ones. The dumb ones are those who spend all their money as they go and end up with nothing.
I’ve heard it said that people should trust no one. I wouldn’t advise that. Life is hard enough without suspecting everyone of being dishonest. At the same time, I like the Ronald Reagan slogan: Trust but verify. I’m sure Detmer and others thought they did that. The only bit of small-fry financial advice I’d offer is not to put all your money into a single entity, in case it fails — honestly or dishonestly.
Easy to say at this point.