WADOO!!NEWS: Former NFL first-round pick charged with fraud from alleged Ponzi scheme
Will Allen had a nice NFL career. He was a first-round pick and then logged 11 NFL seasons with the New York Giants, Miami Dolphins and New England Patriots. He went on injured reserve before the 2012 season and faded away from our consciousness, as many NFL players do.
But apparently the Securities and Exchange Commission was keeping close tabs on Allen after his career, considering the SEC alleges Allen was part of a Ponzi scheme that raised $31 million from investors.
The SEC announced Tuesday that it was filing fraud charges against the former NFL cornerback and others. The SEC alleged that Allen, a first-round pick by the Giants in 2001, and business partner Susan Daub claimed to use investors’ money to make loans to professional athletes. The SEC says Allen and Daub told investors they could profit by funding the loans and getting interest of up to 18 percent from the athletes.
According to the SEC, Allen and Daub allegedly used money from some investors to pay other investors, which is the Ponzi scheme. The alleged scheme started in July 2012 (about a month before Allen went on injured reserve, which was pretty much the end of his NFL career) through February 2015. The SEC claimed the duo “advanced approximately $18 million to athletes while raising more than $31 million from investors.”
What about the leftover money? If the alleged Ponzi scheme itself wasn’t bad enough, according to the SEC, “Allen and Daub allegedly misled investors about the terms, circumstances, and even the existence of some of the loans and used some investor funds to pay personal expenses such as charges at casinos and nightclubs, or to fund other business ventures.”
Nothing like taking investors’ money for some bottle service at the club or some high-limit blackjack. Or at least that’s what the SEC claims they may have done.