Ex UGA FB Coach Donnan Indicted In Ponzi Scheme

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))

So, Now It's A Ponzi Scheme With Donnan...?

((HT: ESPN.com/Barr))

The HQ has reported previously about the impending bankruptcy of former Georgia head coach Jim Donnan...

Now we know that, apparently, he was involved in a Ponzi scheme when GLC Enterprises of Ohio was soliciting funds. Depending on who you believe, Donnan was either a recruiter of fellow college coaches who knew Donnan and not the goals of GLC, or suckers who padded Donnan's bank account...

From Barr:

According to court documents, investors sank nearly $82 million dollars into GLC Enterprises, but less than $12 million was spent on inventory and at least $13 million in investor money remains unaccounted for. With dwindling revenues, GLC eventually used money from new investors to pay old investors, which, according to the court documents, constituted a Ponzi scheme.

GLC is being restructured under new management. The current operators, who filed Thursday's lawsuit, declined to comment, as did their attorneys.

The Donnans and their family members made more than $14.5 million from GLC in the form of "approximately 293 transfers to James and Mary Donnan or their immediate family members," according to the court documents.

Donnan recruited coaches like Frank Beamer, Tommy Tuberville, Dennis Franchione, and Barry Switzer to be involved in the GLC venture over time.

Here's the lawsuit against the Donnan family...

Either way, this doesn't look good for Donnan the family... and while this may be a signature moment for the coach off the field, here's one of the signature moments of Donnan on the field- against Tennessee...
((HT: ESPN/SEC/youtube))