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Securities Regulator Charges Former Georgia Football Coach with Ponzi Fraud

Securities Regulator Charges Former Georgia Football Coach with Ponzi Fraud

Securities Regulator Charges Former Georgia Football Coach with Ponzi Fraud 150 150 Rex Securities Law

Former Georgia head football coach Jim Donnan and a business partner were charged by the Securities & Exchange Commission with fraudulently raising $80 million from about 100
investors between 2007 and 2010 in a Ponzi scheme targeting college coaches, former players and others.

A ponzi scheme is perpetuated by using money raised from  investors to pay “returns” to other investors giving the appearance of a successful and ongoing business. In most ponzi schemes there is little or no real business being conducted by the promoter, who as you may have guessed, funnels off a portion, if not most,  of the money for himself.

In Donnan’s scheme, according the the SEC, investors were told that their investment dollars were being used to purchase leftover merchandise from major retailers which was to be sold to discount vendors. Investors were promised inordinately high potential returns of  over 300%. Donnan capitalized on his notoriety as Georgia’s head coach, and later as an ESPN announcer to gather investors.  Donnan is in bankruptcy and investors are fighting over what is left.

If an investment proposition being touted to you sounds too good to be true, it probably is and you should fight the temptation to commit your hard earned dollars to it without fully investigating it.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

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