Former UGA coach Jim Donnan charged in $80 million Ponzi scheme

Former Georgia football coach Jim Donnan is facing federal fraud charges for his connection with an alleged $80 million Ponzi scheme the Securities and Exchange Commission announced on Thursday.

According to the SEC, Donnan and his business partner, Gregory Crabtree of Proctorville, Ohio committed the fraud through a wholesale liquidation company called GLC Limited in West Virginia. Donnan and Crabtree “promised investors exorbitant rates of return ranging from 50 to 380 percent,” according to SEC spokeman John Nestor. “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.”

The Ponzi scheme allegedly started in August 2007 and fell apart in October 2010.

[AJC]

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