Russell Erxleben

Russell Erxleben, a former NFL kicker and UT football player currently in federal custody for spearheading a slew of bogus investment operations, will stay behind bars until his trial begins Jan. 6.


On Friday, U.S. District Judge Lee Yeakel told attorneys he needed more time to review Erxleben’s case and postponed his ruling on whether to release Erxleben on bond.


The three-time All-American player is currently serving time for leading a slew of investment operations since 2005, including a Ponzi scheme that defrauded his associates out of $2 million in nearly four years.


According to Daryl Fields, a spokesman for the U.S. Department of Justice, Erxleben will have to wait another four months before his trial can resume.


“Trial date is January 6,” Fields said in a email. “No decision yet by judge as to Erxleben’s’ bond request. Judge took the information from today’s’ hearing under advisement and will render a ruling at a later date.”


According to the Austin American Statesman, court records indicate Erxleben’s most lucrative enterprise compelled his clients to invest in defrauded post-World War I German government gold-bearer bonds from the 1920s and 1930s.


During Erxleben’s first detention hearing in May, Judge Andrew W. Austin mandated that Erxleben remain behind bars until his trial. Andrew said Erxleben posed a financial threat to the community and doubted his ability to stay out of trouble.


“He manipulates people,” Austin told the Statesman. “He manipulates them with fear. He manipulates them with guilt. He manipulates them with promises.”

Former UT All-American and NFL kicker and punter Russell Erxleben, who previously served a federal prison sentence for securities fraud, was arrested Thursday on new charges of running an illegal Ponzi investment scam that netted more than $2 million.

According to a federal indictment, the 56-year-old Erxleben scammed investors from 2005 to 2009 with fraudulent deals that promoted dealing in post-World War I German government bonds and a work of art purportedly by French painter Paul Gauguin.

According to the indictment, Erxleben used the investments to pay himself and previous investors. Erxleben was indicted on five counts of wire fraud, one count of securities fraud and two counts of money laundering. He faces up to 20 years in prison on each of the wire and securities fraud charges, and up to 10 years on the money laundering charge.

U.S. Magistrate Judge Mark Lane ordered Erxleben held in custody until his next court appearance Jan. 28. Erxleben requested a court-appointed attorney but told the court he may also seek to hire private counsel.

Erxleben was sentenced in 1999 to seven years in federal prison for an investment scam that robbed investors of $36 million. The latest indictment said Erxleben did not disclose that conviction or the fact he still owed $28 million in restitution, to his later investors.

Erxleben still holds the record for the longest field goal in UT history — 67 yards. He was a first-round draft pick by the New Orleans Saints
in 1979.

– Associated Press

Football alumni, Russell Erxleben and Fred Gladle, face potential fraud charges. Erxleben, No. 15, was a three-time All-American.

A 1970s UT football star is once again in legal trouble after an Austin resident filed suit against him for fraud earlier this month.

According to the suit, plantiff Matthew Hand loaned $40,000 to each of two men: Russell Erxleben, who was a kicker/punter for UT in the ‘70s, and co-defendant Fred Gladle. According to the suit, Erxleben and Gladle promised to repay the loan and issue bonds valued at $350,000 to Hand after a one-month period. The defendants promised the value of the bonds was a “stipulated US Court value,” despite the fact that no U.S. court had set the bonds at that value, according to the suit. The bonds were never delivered, the suit claims. Both men’s wives are listed in the suit as beneficiary defendents because the suit claims they benefited from the fraud with the knowledge it occurred.

The suit alleges Erxleben, Gladle and their wives led an extravagant lifestyle of houses, cars, clothes and a skybox at the Darrell K Royal-Texas Memorial Stadium. Erxleben had been under investigation since at least 2008 for trying to sell gold-bearer bonds at misrepresented values and quantities. Boxes of Erxleben’s documents were taken as part of this investigation, according to the Austin American-Statesman.

Erxleben served a prison sentence from 2000 to 2005 and was fined millions in monetary restitution after misrepresenting the performance of Austin Forex International, his former currency trading company. The company’s failure cost approximately 800 investors a total of $50 million, according to the Philadelphia Inquirer. More recently, Erxleben was sued for breach of contract by Associated Drilling Company after failing to pay $20,675 for a well installed at his house in Dripping Springs.

Gladle and his wife have not been previously charged with fraud. The couple was involved in foreclosure proceedings against their Austin residence, finalized in Oct. 2005.

Erxleben played for the UT football team in the late ‘70s and is the only three-time All-American punter in NCAA history. After his time at UT, Erxleben was drafted by the New Orleans Saints, but only played for one year.

Locke Lord Bissell & Liddell LLP, a law firm that previously represented Erxleben, said it was not representing him in this case. Terry W. Yates & Associates, another law firm that previously represented Erxleben, could not be reached for comment by press time. The Cagle Law Firm, P.C., which represents Hand, also could not be reached by press time.

Printed on Tuesday, October 23, 2012 as: Former football player sued for fraud