The Phillies’ Alec Bohm and his parents settled a multimillion-dollar financial mismanagement lawsuit
The terms of the settlement to resolve the lawsuit Alec Bohm filed against his parents, Daniel and Lisa Bohm, are confidential.
Alec Bohm and his parents have settled a multimillion-dollar financial mismanagement lawsuit, nearly six months after the Phillies’ infielder accused the elder Bohms of enriching themselves off his baseball earnings.
The terms of the settlement are confidential, said Gary DeVito, a Zarwin Baum attorney representing Bohm.
The 30-year-old one-time All-Star accused his parents of using several limited liability companies to funnel money from his personal financial accounts, which they then “converted to their own use,” the suit said.
The young Bohm asked a Philadelphia Common Pleas Judge to order his parents to pay him at least a $3 million judgment.
The parents denied wrongdoing throughout the litigation. In court filings, they called the allegations “cruel and publicly humiliating.”
Justin Kadoura, a Holland & Knight attorney for Daniel and Lisa Bohm, confirmed the case was settled and declined to comment further.
Bohm’s parents had overseen his finances since 2019, using a series of LLCs to hold the money and assets he earned as a professional baseball player, the suit says.
The Phillies player alleged his parents told him they needed to take a 10% interest in those LLCs on paper in order to act as authorized representatives of his interests, but he would retain all the assets and funds they contained.
Daniel and Lisa Bohm went on to gain access to their son’s personal financial accounts, the lawsuit says. They would limit the amount of money in Alec Bohm’s personal accounts, and transfer the rest to ones held by LLCs, according to the suit.
While the money was intended for “traditional investment purposes,” such as stock trading, to secure the player’s passive income, the suit says, Bohm’s parents “converted to their own use” an undetermined amount, and used money from the Alec Bohm Foundation — which they also established — to “pay their own personal expenses.”
When Alec Bohm asked his parents in January to provide him with information about his holdings, the suit says, they opted to “engage counsel,” who then gave minimal information.
Bohm’s parents later allegedly indicated they would bill the Phillie for “all the time they spent to administer Alec’s affairs” at a rate of $50 per hour.
In the suit, the 2018 third-overall MLB draft pick asked the court to order his parents to return any money they used for their own purposes, as well as pay “make Alec whole.”
Daniel and Lisa Bohm said in court records their son was aware of the corporate entities that held his assets and the entities were created based on advice of Alec Bohm’s attorney and financial adviser.
The baseball player’s “apparent lack of knowledge” over his finances “emanates solely from his own lack of attention and interest,” the parents’ said in a court filing.
“He had been perfectly happy to have Mom and Dad do all of the work, while he focused on baseball and enjoyed an otherwise carefree life,” the filing said.
The settlement was announced Thursday night, hours after a scheduled hearing in the Philadelphia Court of Common Pleas that did not take place.
In a May hearing, attorneys clashed over a request for an injunction that would have halted arbitration proceeding in Florida and freeze $528,618 that his parents transferred into their attorney’s trust account.
The majority of the hearing surrounded minute legal details about jurisdiction and the type of fraud that Bohm alleged his parents committed.
Throughout the summer, the parties sparred in court filings over when Alec Bohm would sit for a deposition. The parents’ attorneys sought a court order compelling their son to be deposed. They called the delays in scheduling “gamesmanship designed to avoid the truth.”
Attorneys for both sides declined to say whether Bohm was deposed.
The public family dispute comes to an end as the Phillies prepare to face the Atlanta Braves in an attempt to take over the top spot in their division. The team has been red-hot over the past month, and Bohm is playing the best baseball he has played this year.
