DEVELOPING: Donnan Found Not Guilty On 41 Counts

((HT: AJC/Tucker))

Jim Donnan was found not guilty on 41 counts of conspiracy, mail fraud, wire fraud, money laundering and securities fraud in his case in and around Greg Crabtree's GLC Holdings. GLC sold out-dated and closed-out merchandise out of a West Virginia warehouse and promised investors a big return. But GLC eventually would pay early investors with later investor dollars.

Thus, the prosecution's thoughts that GLC was a Ponzi scheme and that Donnan was at the heart of it. A lot of high-profile coaches, athletes, and boosters were brought into GLC by Donnan's relationships with them through collegiate athletics like Frank Beamer and Billy Gillispie.

Donnan's attorneys said that Crabtree was the one in charge of the whole thing as the business lost over $20-million overall.

Here's part of the Joyce Oscar story that compared Donnan to a sports-version of Bernie Madoff from 2011
((HT: Southern Free Press))


From Tucker:

Jury foreman Artis Ricks said, “Mr. Donnan was as big a victim in this as some of the investors.”
Ricks said the government did not prove its case against Donnan.
“I just never saw that smoking gun that proved his guilt,” he said
On the way out of the courthouse Donnan told reporters, “I feel vindicated, and I hope I can get my life back.”

Crabtree pled guilty to one count of "conspiracy to commit fraud in the sale of a security."
He could get five years in prison when he is sentenced in Athens on June 24th...

Jim Donnan Ponzi Scheme Case: Day 3

((HT: AJC/Towers))

Is Jim Donnan in charge of one of the biggest Ponzi schemes around or is he just a guy used by others to bring in the cash for the scheme to work...???

That's the question being debated in an Athens, Georgia courtroom...

Back in the mid-2000's, Donnan was introduced to a guy by the name of Greg Crabtree. Crabtree and Donnan got together, in some capacity-depending on which side you believe- and brought in some heavyweight investors for projects under the GLC Limited umbrella- mostly flipping surplus merchandise and food.

GLC brought in more than $80 million from folks as famous as Frank Beamer and Billy Gillispie, and investors claim the losses were over $20-million. A lot of investors lost their investment principal up to seven figures in losses.

Here's work from the Southern Free Press with Joyce Oscar in 2011 discussing the case with some alleged victims


Crabtree maintains Donnan knew what was going on with the scheme- something Donnan, obviously, denies.

Chip Towers presence at the trial is a required read...

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))

Add Ex-UGA Player To Donnan Lawsuit Queue

((HT: OnlineAthens.com/Shearer))

Add former UGA linebacker and defensive rookie of the year, Kendrell Bell, to the stacks of people who now want a piece of former UGA head football coach Jim Donnan and the whole GLC Holdings mess...

Or, alleged mess...

Bell, through his attorneys, claims that Donnan told him that the $2-million he invested with Donnan GLC would...

From Shearer:

“James Donnan guaranteed (Bell) that his investment was safe and that James Donnan would protect him. James Donnan was a father-figure to (Bell), and (Bell) trusted him implicitly.”

“James Donnan, as one of the two architects of the Ponzi scheme, was the prime salesman and largest beneficiary of the scheme. In short, James Donnan duped (Bell) into investing $2 million, and then diverted his money from GLC to (Jim and his wife Mary Donnan) or other investors.”

Donnan invested millions in GLC at the stat, but would receive a commission when he would bring in other investors. GLC, in court documents, allegedly brought in over $80-million, but only pulled in $12-million in activity.

The huge payouts apparently went to GLC's originators, Donnan and others who were at the top of the payment pyramid.

Donnan filed for bankruptcy protection last year and is in the process of trying to work out payment solutions for creditors. That first round of decisions is set for March.

For those of you who remember what Bell was like as a pro, an example is below...