Michigan's Rich Rodriguez and four other investors are being sued for allegedly defaulting on a real estate loan to build condominiums near Virginia Tech's Lane Stadium.
According to the lawsuit, Rodriguez and his partners owe Nexity Bank $3.9 million, including interest and penalties. Rodriguez was served a summons and complaint in his office on Aug. 24, shortly after a Wolverine practice.
Mike Wilcox, who is Rich Rod's financial advisor, issued a statement Monday night saying the coach is a victim of a real estate Ponzi scheme.
"This is a personal issue, and as coach Rodriguez's financial advisor, I and his legal counsel will be handling this matter moving forward," Wilcox said. "We are evaluating legal actions and solutions since the promoter of the scheme is currently awaiting trial on criminal charges."
Condominiums in The Legends of Blacksburg project start at $350,000 and range from 800- to 1,600-square feet.
Thanks to Harry for his help.