Reuters: Regulatory News: UPDATE 1-SEC charges Hall of Fame football coach in Ponzi scheme

Reuters: Regulatory News Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

UPDATE 1-SEC charges Hall of Fame football coach in Ponzi scheme Aug 16th 2012, 15:57 Thu Aug 16, 2012 11:57am EDT Aug 16 (Reuters) - U.S. securities regulators charged a former college football coach and Hall of Fame inductee, Jim Donnan, on Thursday with running an $80-million Ponzi scheme, the victims of which included other college coaches and former players. Donnan, who coached football at Marshall University and the University of Georgia before becoming a television commentator, recruited contacts from his sports career as investors in the company he ran with business partner Gregory Crabtree, the U.S. Securities and Exchange Commission said. "Your Daddy is going to take care of you," Donnan told one former player who later invested $800,000, according to the SEC's complaint. The men told investors their company, GLC Limited, bought leftover merchandise from retailers and resold it to discount retailers. They promised returns of 50 percent to 380 percent and raised $80 million from about 100 investors, the agency said. But only about $12 million went to buying merchandise, and the rest was used to pay fake returns to investors or stolen for other uses. The scheme ran from August 2007 to October 2010, the SEC said in its complaint, filed in federal court in Atlanta. Much of the merchandise GLC purchased was left unsold in warehouses in West Virginia and Ohio. Donnan, who lives in Athens, Georgia, took more than $7 million from GLC, the SEC said. Crabtree, who lives in Proctorville, Ohio, took more than $1 million. The men have been charged with violating antifraud and registration provisions of federal securities laws. Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions