Former NFL player Will Allen has had civil fraud charges levied against him by federal regulators claiming the former cornerback and his business partner were involved in a $31 million Ponzi scheme that promised returns to investors who gave loans to financially struggling pro athletes.
According to the Securities and Exchange Commission Allen, Susan Daub, and their Capital Financial Partners investment firms did pay out about $20 million to investors but received only around $13 million in loan repayments from athletes. “To make up the gap they paid investors with other investors’ money rather than actual profits on the investments, in a classic Ponzi scheme, the agency said. The conduct allegedly continued from July 2012 through February of this year,” reports TheGrio.
Allen and Daub, says the agency, also used some of the money from investors to pay for personal charges at casinos and nightclubs and to finance other business ventures.
Allen was in the NFL from 2001 to 2012, playing for the New York Giants and the Miami Dolphins. The New England Patriots signed him in March 2012 but Allen, now 36, was placed on injured reserve the in August 2013. He retired from football in March 2014.
His business partner, Daub, 54, is a financial professional also based in Florida.
The pro athletes victimized by the Ponzi scheme were not named publicly.