Agency said it repped famous athletes — but it was a multimillion-dollar scam, feds say
The owner of a sports marketing firm in Tennessee is accused of scamming investors out of millions of dollars over the course of four years with overblown claims about famous athletes and brand deals.
Katie Lynn Mancuso faces federal charges in connection with a $2.8 million Ponzi scheme she’s accused of operating through her company Gray Area Marketing, federal prosecutors in the Middle District of Tennessee said Thursday in a news release.
Mancuso and her defense attorney did not immediately respond to McClatchy News’ request for comment Thursday.
Prosecutors said the 40-year-old from Nashville fooled dozens of investors into believing her marketing company represented famous athletes by using fake contracts and doctored financial statements.
In reality, Gray Area Marketing “generated little, if any, legitimate revenue,” the government said in court documents.
The alleged scheme dates back to June 2017, when Mancuso started soliciting investors for Gray Area Marketing.
On its website, which was still active as of Thursday afternoon, the company touts more than 11 years of experience, over 74 clients and at least 98 “managed deals.”
“We are a full service athlete representation, marketing and management firm,” the website states. “We come alongside the athlete’s agent in order to provide additional streams of revenue, assist in branding and public relations. Clients are nationwide in the NFL, MLB, and NBA.”
Mancuso is listed as the owner and founder.
Prosecutors said she gave prospective investors fake invoices from major brands such as Nike, Oakley and Under Armour that made it look like they owed Gray Area Marketing for services. She also turned over doctored tax returns, bank statements and profit and loss sheets that made the business look successful.
Most of the funds flowing into Gray Area Marketing actually came from loans or other investors, the government said.
Mancuso, meanwhile, used investors’ money to pay for living expenses, hotels, bars and plastic surgery, prosecutors said. The so-called “Boss Babe” held herself out online as a female success story in a “male-dominated world.”
In a three-and-a-half-minute video interview posted on the company website, she referred to clients as family who “depend on us to help increase their livelihoods and their careers.”
“It doesn’t matter who you are or where you’ve come from, what matters is that you live well, you work hard, you live with integrity,” Mancuso said. “And if that’s the message I can instill and I can send to someone else so that they can take that on and know that it’s possible to walk out their dream, then to me, that’s success.”
Prosecutors said Mancuso tried to cover up the fraud by forging attorney signatures and fabricating emails with a bank employee.
From 2017 to February 2021, she is accused of scamming 26 victims out of more than $2.8 million. Some of the money was reportedly repaid as part of the scheme, leaving about $1 million in losses.
“Mancuso provided numerous false excuses for why she had not repaid victim funds,” prosecutors said in court filings. “In reality, Mancuso could not repay victims because Gray Area did not have sufficient assets to do so.”
If she is convicted, Mancuso faces up to 20 years in prison on the wire fraud charges and 30 years on the bank fraud charges.
This story was originally published September 2, 2021 at 6:49 PM with the headline "Agency said it repped famous athletes — but it was a multimillion-dollar scam, feds say."
