A former player for the Milwaukee Bucks and the New Jersey Nets has been
accused of running a
Ponzi scheme. The scam was allegedly run by 43-year-old Tate George, of Newark, through
his George Group company. The former NBA player is expected to plead not
guilty to charges of wire fraud.
Prosecutors say that Tate targeted other former professional players with
the alleged Ponzi scheme, which ultimately brought in $2 million for the
George Group. He is said to have told investors that he was developing
real estate in both Connecticut and New Jersey and that his portfolio
was worth $500 million. Unfortunately, he is accused of instead using
cash from new investors to pay off previous investors to keep up the appearance
of legitimacy. U.S. Attorney Paul Fishman stated that, “the George
Group had virtually no income-generating operations.”
It is also suspected that George used investors’ cash to pay for
his own expenses, which included work on his own home, restaurant bills,
gas costs, and articles of clothing. He was originally arrested in September
2010 and was released at that time on $250,000 bail.
securities fraud attorneys with Meyer Wilson serve investment fraud victims across the United States.
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