Former UGA head football coach Jim Donnan and a business associate have been indicted on an 85-count grand jury decision over a Ponzi scheme. Donnan and Gregory Crabtree of have been charged with conspiracy, mail fraud and wire fraud, unlawful transportation of interstate securities, and money laundering.
Donnan was supposed to appear in court today to answer the indictment.
Donnan and Crabtree ran a West Virginia-base company called GLC Holdings that dealt, mainly, in closeout merchandise. Crabtree operated the business and Donnan recruited investors that he allegedly told would get a return on their investment of somewhere from 50-to-200 percent (or, in some reports upwards of 380-percent). Donnan used his star power to recruit sports figures to invest. Some of them included Dennis Franchione, Barry Switzer, Frank Beamer, and Tommy Tuberville.
Between September 2007 and October 2010, the indictment claims the two raised more than $81 million from 94 investors.
In February 2011, GLC was forced to file a voluntary bankruptcy petition. Donnan his wife had to file a personal bankruptcy claim with a reported $40-million debt given to creditors. A bankruptcy court approved a plan for the Donnans to address their debt repayment.
Here's how it was talked about at the time of the indictment...
((HT: 11Alive.com))
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