Former Georgia Coach Accused Of Running Ponzi Scheme
College football coaches are celebrities. People recognize them when they go out, and they have a lot of influence on those around them. Jim Donnan, who was the head coach at the University of Georgia from 1996-2000, is accused of perversely using his influence.
According to CBS Sports, Donnan and a business partner are being accused by the U.S. Securities and Exchange Commission of creating a Ponzi scheme. The pair created a liquidation company that would re-sell used furniture, and raised over $80 million to get it started. The problem is, only $12 million of that went into actual business costs, while the $60+ million was used to pay false returns.
Apparently, Donnan used former players to help him connect with serious investors, telling them that he was doing them favors.
This will not end up being a good business decision for Jim Donnan.