Neagle and his former wife, Jennifer, filed suit in Cook County Circuit Court against Northbrook, Ill.-based William S. Leavitt and Leavitt Capital Management, the Chicago Sun-Times reported Tuesday.
The suit said the Neagles were "utterly unsophisticated" when it came to financial management and investment, and had counted on Leavitt and his firm for guidance in 1995.
Instead of conservative investments, the suit charges their money was placed in hedge funds, private equity funds and other unregulated investments that were incredibly risky, illiquid and laden with fees.
As a result, the Neagles incurred huge losses and can't access much of their portfolio. They also paid taxes on phantom income.
The Neagles are asking for a jury trial, damages and return of the original amount paid for the investments.
Neagle was last under contract with the Tampa Bay Devil Rays in 2005.