Friday, August 17, 2012

Coach Switzer Victim of a Ponzi Scheme

Jim Donnan allegedly took millions in a ponzi scheme: Former Georgia coach Jim Donnan used his influence to get high-profile college coaches and former players to invest $80 million into a Ponzi scheme, the U.S. Securities and Exchange Commission said Thursday.

Donnan and a business partner convinced investors to put money into a liquidation company that bought and resold appliances and furniture, the SEC said. Donnan and Gregory Crabtree, of Proctorville, Ohio, told investors the business was unique and profitable with huge potential and little risk, said William P. Hicks, associate director of the SEC's Atlanta office.

The pair raised about $80 million from nearly 100 investors, but only about $12 million of that was used to buy merchandise while the remainder was used to pay false returns or was pocketed by Donnan and Crabtree, the SEC said. Donnan also funneled large sums to family members, according to the SEC.

Among the coaches Donnan helped attract were Texas State football coach Dennis Franchione; Virginia Tech football coach Frank Beamer; former Oklahoma and Dallas Cowboys coach Barry Switzer and Texas Tech football coach Tommy Tuberville. (Much more at CBSSports)
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