Getty Image / Doug Murray
The Miami Hurricanes were one of the first schools to hit the ground running when it came to being aggressive in the NIL market. And, a lot of that had to do with booster John Ruiz.
Ruiz, an attorney and a Miami alum, is the founder of MSP Recovery, which with the product LifeWallet deals with medical reimbursements. And, he loves his Hurricanes.
He came out aggressive, claiming last November that he distributed over $10 million in year one of NIL. That certainly helped the Hurricanes on the recruiting trail and transfer portal. But, his activity in the NIL space has slowed down recently as the finances of his company come into question. Now, there is reportedly a federal investigation into his business dealings. Here is On3 with more.
Ruiz and LifeWallet are the target of investigations by the U.S. Securities and Exchange Commission and the U.S. Attorney’s Office for the Southern District of Florida, according to the Miami Herald. Per the report, SEC investigators are looking into whether LifeWallet represented to investors about its value and other possible securities violations.
Multiple witnesses have also been interviewed about Ruiz and his company by the U.S. Attorney’s Office in Miami, according to the Herald.
In a text message to On3, Ruiz stated the company plans to release a statement later Sunday. “Neither I nor the company are the target of a criminal investigation,” Ruiz said to On3.
Once valued at $32 billion, LifeWallet — formally MSP Recovery — currently trades for 2 cents. When the company went public through a SPAC — a special purpose acquisition company — merger last year it was worth more than $10 a share.
According to the Herald, Ruiz and Chief Legal Officer Frank Quesada loaned LifeWallet more than $100 million less than a month after it went public. The company also had to renegotiate with creditors for an extension to pay off its debts, per the report.
Losing 99.8% of your value in just a couple of years is pretty impressive when it comes to bad business. And, while John Ruiz has stepped back from NIL stuff with Miami, it’s still not a great thing to be associated with.