Greg Feste found faith, but investors lost millions

At one time Greg Feste seemed like a very successful businessman.  He was the founder and former CEO of the now defunct Austin Wranglers football team, once a member of the AFL.  And Feste found faith through his friend Greg Ball.

Greg Feste reportedly told the Chicago Tribune in 1998 that his buddy Ball, "introduced me to Jesus Christ." And explained, "He's everything I got." 

Greg Ball, a controversial religious leader, ran a charity called Champions for Christ, a ministry that targeted pro athletes. 

Greg Feste became a sports agent also focused on Christian athletes, but he seemed to mix religion and business in a brew that garnered some controversy. 

After his conversion Feste started a nonprofit to teach Christian principles to corporate executives. In 1995 Feste created the Malachi Foundation to fund ministries, which later became known as FesteCapital Foundation.

Feste told the Austin American-Statesman that he ran companies involved in real estate, mortgages and money management, private equity and aviation. 

But Feste's businesses failed and he faced a court judgment for unpaid bills, later filing for bankruptcy protection.

People that invested in Feste expressed regret and told the Austin American Statesman that they should have engaged in more due diligence. 

Greg Feste had a history of bad debts, but according to investors he seemed OK.

 "He certainly gave the illusion of having more money than he had," Jim Schneider, a former Dell Inc. chief financial officer told the press. Schneider invested in the Wranglers and a Whataburger franchising business Feste set up.

High flyer

Feste leased a private jet from NetJets Aviation Inc. and flew around with friends, family and potential investors. He even created a company to pay the jet bills.  According to court records Feste took off on 27 flights in just four months during 2003 and 2004. 

Greg Feste's list of passengers included Texas Governor Rick Perry, his wife and daughter, and U.S. Senator John Cornyn and his wife. Feste stated under oath that Perry and Cornyn were his friends. He also reportedly wrote checks to help their campaign fund raising efforts. When asked why Feste answered, "You know, the company did business with certain folks, and sometime it's just an act of good will to help out."

However, Perry and Cornyn publicly distanced themselves from Feste. 

Feste ultimately failed to make the jet lease payments through his company, which according to a federal judge, "had no assets and its sole purpose was to own the NetJets lease."

NetJets won a judgment against Feste in federal court for $331,000 due to unpaid bills in 2005.

A federal judge stated that Feste was "intentionally evasive" and had "a remarkably faulty memory" when it came to answering questions about his business dealings. Feste reportedly answered "I don't know or "I don't recall" more than 100 times while under oath.

Losers

Investors lost millions on Greg Feste's business schemes including Cheesecake Kitchen restaurants, which went bankrupt in less than two years after raising $2.6 million from investors.

Frequently professional athletes were Feste investors such as NFL players Mark Brunell, Tony Boselli and Glyn Milburn.  Feste's business dealings with NFL players went back to the 1980s. In the late 1980s when Feste was a stockbroker in Houston, he agreed to $254,000 in settlements with his clients and a one-day suspension for "unsuitable recommendations" regarding stocks, according to the Financial Industry National Regulatory Authority.  

In 1989 Greg Feste filed for bankruptcy claiming $3.8 million in debt.

In 2007 it was reported that Greg Feste had incorporated 57 businesses in Texas.

Update

Today Greg Feste runs Rezilient Direct, an online supplemental insurance firm. He describes himself as "an Entrepreneur and Anti-Cancer advocate." At LinkedIn Feste says, "I bring a wealth of experience to building and running large companies across a wide range of industries. I am a results-driven person with extensive experience in business, sales, management, and operational development positions."

People approached by Greg Feste might want to engage in just a bit of due diligence concerning his "wealth of experience" and his historical results.