Hall of Fame Football Coach Accused of Running Ponzi Scheme
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Today the SEC announced fraud charges against a former college football Hall of Fame inductee, Jim Donnan. Charges claim he conducted an $80 million Ponzi scheme that included other college coaches and former players among its victims.
Jim Donnan ran teams at Marshall University and the University of Georgia and later became a television commentator. SEC charges state he conducted the fraud with his business partner Gregory Crabtree through a West Virginia-based company called GLC Limited.
Donnan and Crabtree told investors that GLC was in the wholesale liquidation business and earning substantial profits by buying leftover merchandise from major retailers and reselling those discontinued, damaged, or returned products to discount retailers. They promised investors exorbitant rates of return ranging from 50 to 380 percent. However, only about $12 million of the $80 million raised from nearly 100 investors was actually used to purchase leftover merchandise, and the remaining funds were used to pay fake returns to earlier investors or stolen for other uses by Donnan and Crabtree.
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Jim Donnan ran teams at Marshall University and the University of Georgia and later became a television commentator. SEC charges state he conducted the fraud with his business partner Gregory Crabtree through a West Virginia-based company called GLC Limited.
Donnan and Crabtree told investors that GLC was in the wholesale liquidation business and earning substantial profits by buying leftover merchandise from major retailers and reselling those discontinued, damaged, or returned products to discount retailers. They promised investors exorbitant rates of return ranging from 50 to 380 percent. However, only about $12 million of the $80 million raised from nearly 100 investors was actually used to purchase leftover merchandise, and the remaining funds were used to pay fake returns to earlier investors or stolen for other uses by Donnan and Crabtree.
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