Sports Lender Sues Broker After $4.4 Million Fraud Involving Fake Xavier McKinney Identity

A major lawsuit has exposed a sophisticated identity theft scheme that cost a sports lending company $4.375 million after an impersonator successfully posed as Green Bay Packers cornerback Xavier McKinney to secure a fraudulent loan.

Aliya Sports Finance Fund (ASFF) has filed a comprehensive lawsuit against longtime sports industry loan broker Sure Sports, alleging negligence and failure to perform adequate due diligence that enabled the massive fraud to occur. The FBI is currently investigating the transaction, according to court documents.

The elaborate scheme began when Sure Sports introduced what they believed to be McKinney and his company, XMK Companies, LLC, to Aliya for a substantial loan arrangement. Based on the broker's due diligence report regarding McKinney's identity and creditworthiness, ASFF agreed to the loan terms and closed the deal on April 2, 2024.

The timing proved significant, as McKinney had signed a lucrative four-year, $67 million contract with the Packers just weeks earlier, making him an attractive candidate for high-value lending arrangements that are common in professional sports.

"Based on the information Sure Sports provided to ASFF, including its due diligence as to the identity and creditworthiness of McKinney and his company, XMK Companies, LLC, ASFF agreed to the terms of the Loan," Aliya stated in their complaint, which charges negligence, unjust enrichment and negligent misrepresentation.

The fraud remained undetected for months, with ASFF believing they had successfully completed a legitimate transaction with the NFL star. However, red flags began emerging in September 2024 when Sure Sports founder Leon McKenzie contacted Aliya with concerning information.

"ASFF has come to learn that the borrower apparently was not McKinney, but rather a third party who impersonated McKinney to facilitate the disbursement and theft of the Loan proceeds," the lawsuit alleges.

McKenzie informed Aliya on September 10, 2024, about concerns regarding "the source that brought us McKinney" and mentioned that updates would continue "as we learn more through the FBI investigation." Despite this alarming disclosure, Sure Sports initially failed to advise that problems existed with the loan.

The situation deteriorated further when Sure Sports contacted Aliya again on October 20, 2024, claiming McKinney had requested changes to his loan schedule. When Aliya followed up a week later, Sure Sports finally revealed the devastating truth that the loan "may have been a scam perpetrated by someone other than McKinney" and that "funds may therefore have been stolen by a third party."

Sure Sports, which earned an $87,500 fee for facilitating the "McKinney" loan, has moved to dismiss the case by arguing that Aliya bore responsibility for performing its own due diligence and that the broker could not reasonably anticipate criminal impersonation.

"The Complaint fails to allege Sure Sports had a history of providing underwriting services for those found to be impersonating athletes," Sure Sports contended in their dismissal motion, noting that they were also victims of the impersonation scheme.

However, a judge rejected Sure Sports' motion to dismiss less than two months after it was filed, allowing the case to proceed toward a scheduled three-week trial beginning July 13.

McKinney himself appears to be a victim of identity theft and is not directly involved in the legal proceedings. Sources indicate the fake McKinney loan is not the only identity theft case involving the cornerback that federal investigators are examining.

The case has also revealed Sure Sports' involvement in previous controversial transactions, including arranging more than $47 million across 22 loans to NHL player Evander Kane, who subsequently filed for bankruptcy despite earning over $50 million during his career.

Aliya's parent company is an investor in English football club Reading FC, highlighting the international scope of modern sports financing operations that have become targets for sophisticated fraud schemes.

Both companies are headquartered in Florida, where the lawsuit will proceed as the sports finance industry grapples with the security implications of high-value athlete lending arrangements.