Former NBPA treasurer Pat Garrity had planned to challenge Billy Hunter on business practices during the weekend of the 2009 All-Star Game in Phoenix.
Garrity had warned several players and also Hunter of his intentions and several players avoided the scene.
Hunter had sought a $7 million to $9 million investment from the union into Interstate Net Bank of Cherry Hill, N.J., a financial institution that federal and state banking regulators had slapped with debilitating "cease-and-desist" orders, sources said.
Garrity had discovered that Hunter's son, Todd Hunter, was on the board of directors of Interstate Net Bank.
Todd Hunter is also a vice president for Prim Capital, a company that has a consulting contract with the NBPA. Prim Capital has been paid in excess of $2.5 million since 2006.
"Why didn't you disclose any of this?" Garrity asked Hunter several times at the 2009 meeting, witnesses told Yahoo! Sports.
Garrity confirmed the description of events.
Hunter declined comment to Yahoo! through a union spokesman.
The potential conflicts of interest go beyond what Garrity discovered.
Prim Capital controlled 200,000 shares of ISN Bank stock, according to a 2010 ISN Bank letter to stockholders. In addition to Todd Hunter, another Prim employee, executive Carolyn Kaufman, joined the bank's board of directors of ISN in 2004 and was paid $97,000 and $90,000 in consecutive years, according to a KPMG audit of ISN Bank in January 2008 that Yahoo! Sports obtained.