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...