Ex-Harvard Gridiron Star Swindles Teammates for Disneyland Trip!

SEC v. Nicholas A. Palazzo, 4TA Sports, Inc., NP Ventures Holdings, LLC, et al. — U.S. Securities and Exchange Commission Litigation Release No. 26343, dated July 9, 2025.

Nicholas Palazzo, a former Harvard football player, orchestrated two fraudulent schemes, raising over $3.1 million from investors. He promised funds would support sports businesses but instead used the money for personal expenses like private school tuition and rent, and undisclosed debts. Palazzo and his corporate entities have been permanently enjoined from future securities law violations.

In Plain English

Imagine someone promising to use your money to build a cool sports app or buy a sports company. Instead, they take your money and spend it on things like their own rent, vacations, or their kids' school. That's what happened here, where a former football player took money from investors, including his old teammates, and used it for himself instead of his promised businesses.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

1. Targeting Investors Nicholas Palazzo, a former Harvard football player, leveraged his connections to build trust with potential investors, including former teammates.
2. Scheme 1: STACK Repurchase Between October 2019 and March 2020, Palazzo, through 4TA Sports, Inc., raised $900,000 from three investors. He promised their funds would be used to repurchase the assets of STACK Media, Inc.
3. False Promises for STACK Palazzo falsely claimed he had or would soon secure $5 million in third-party funding for the STACK repurchase and assured investors their money would fund this acquisition.
4. Misappropriation in Scheme 1 Instead of repurchasing STACK's assets, Palazzo immediately spent the $900,000 on undisclosed debts, litigation fees, and personal expenses, including private school tuition and rent.
5. Scheme 2: Sports Betting App From September 2020 to December 2023, Palazzo, through NP Ventures Holdings, LLC and Play Caller Sports Gaming LLC, raised approximately $2.1 million from 22 investors.
6. False Promises for Play Caller He told these investors their money would be used to develop and launch the Play Caller sports-betting application.
7. Misappropriation in Scheme 2 More than three-quarters of the $2.1 million raised was misappropriated by Palazzo for personal expenses, such as rent for a multi-million-dollar home, jewelry, and a vacation.
8. Total Funds Raised and Misused In total, Palazzo raised about $3.1 million across both schemes and spent approximately $2.6 million on himself and unrelated expenses.

The Enforcement Action

On June 30, 2025, the U.S. District Court for the Northern District of California entered final judgment against Nicholas A. Palazzo, 4TA Sports, Inc., NP Ventures Holdings, LLC, and Play Caller Sports Gaming LLC. The defendants were permanently enjoined from violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Palazzo was ordered to pay disgorgement of $2,648,132.73 plus prejudgment interest, with corporate defendants jointly and severally liable for portions. Palazzo was also ordered to pay a $150,000 civil penalty. He is barred from acting as an officer or director of a public company for five years and prohibited from participating in the issuance, purchase, offer, or sale of any security for five years, other than for his personal accounts.

Named in this action: Nicholas A. Palazzo, 4TA Sports, Inc., NP Ventures Holdings, LLC, Play Caller Sports Gaming LLC.

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