Federal Criminal Defense Blog
Former Bulldogs Coach Charged in Ponzi Scheme
Former University of Georgia football coach Jim Donnan is accused of being the creator of a fraudulent $80 million Ponzi scheme, according to Securities and Exchange Commission authorities. The SEC complaint charges Donnan with violating federal securities laws.
Together with his partner Gregory Crabtree, Donnan used his influence to convince coaches and former players to invest in their West Virginia-based liquidation company, GLC Limited, promising high rates of return for very little risk. Nearly 100 investors took the bait. Notable among those investors were Barry Switzer and Virginia Tech’s Frank Beamer. It was estimated individual losses ranged from a few thousand dollars to $4 million.
However, as in any Ponzi scheme, only about $12 million of the original $80 million raised was ever actually used to buy merchandise for liquidation; the rest, roughly $68 million, was used to pay false returns to early investors or was spent by Donnan and Crabtree.
In addition, it is believed Donnan diverted large sums of money to two of his adult children, as well as to a son-in-law. SEC regulators hope to recover some of that money.