Former Georgia coach Jim Donnan charged in alleged Ponzi scheme
Former Georgia football coach Jim Donnan has been charged with fraud for his alleged role in a Ponzi scheme, the Atlanta Journal Constitution reports on Twitter.
ajc sports editor (@ajcsportseditor) August 16, 2012
The allegations against Donnan surfaced in July 2011 during a bankruptcy case. The former coach is accused of helping to draw investors to a West Virginia-based wholesale liquidation company known as GLC Limited.
The SEC says the 100 or so investors, reportedly including other former college coaches, were promised extremely high returns by Donnan and a partner named Gregory Crabtree. Instead, the SEC says, the pair created a Ponzi scheme in which new investors were paid with money from old investors.
In June, Donnan reportedly reached a deal on a bankruptcy settlement with GLC Ltd. and the investors he brought in to the company.