ATLANTA (AP) -Seven current and former NFL players have sued the league and its union to recover $20 million they lost in an alleged fraud scheme, claiming the union endorsed the services of an investment firm even though its manager had liens against him.

In a lawsuit, filed Friday in U.S. District Court, the players said the league and the NFL Players Association are liable for the losses because of investments with hedge fund manager Kirk Wright.

The suit says the union recommended Wright through registration in a union investment program even though Wright and his partner, Nelson ``Keith'' Bond, had active state and federal tax liens against them.

The players also say that the union failed to certify that Wright was properly insured as required by the program, and failed to notify the plaintiffs about those matters.

NFL spokesman Greg Aiello said Tuesday the league regards the lawsuit as unfounded and without merit.

``We will review the matter with our attorneys and look forward to responding as directed,'' he said.

He added that only one of the players, Blaine Bishop, asked for a background check, and only for Bond, and that a database reviewed by the league's security department found no record of any liens or relevant information.

NFLPA spokesman Carl Francis said his group was looking into the matter.

``We don't have all the facts,'' he said. ``Once we do, we will address it.''

Wright was arrested in Miami Beach in May on federal fraud charges. He also faces a lawsuit filed by the Securities and Exchange Commission against him and his company, International Management Associates.

Among the clients deceived by Wright are former Denver Broncos players Steve Atwater, Ray Crockett, Al Smith and Bishop, as well as former Philadelphia Eagles player Clyde Simmons, authorities said.

The five players are plaintiffs in the lawsuit against the NFL and players' union, along with Marco Coleman, who has played with six teams including the Broncos, and Carlos Emmons, who currently plays for the New York Giants.

The players are asking in the suit for compensatory and punitive damages as well as an injunction to ensure that the NFL and its union have adequate practices in place for performing background checks and protecting players from fraud by registered financial advisers.

According to authorities, Wright and his company collected as much as $185 million from at least 500 investors since 1997 and misled some of them to believe the value of those investments was increasing using false statements and documents. As recently as Jan. 25, the firm reported $166.6 million in assets spread across five hedge funds it manages and advises. That money is now missing, according to the SEC.

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