Former Professional Basketball Player Indicted in Ponzi Scheme
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.
The securities fraud attorneys with Meyer Wilson serve investment fraud victims across the United States. We have represented over 800 clients in stockbroker mediation, arbitration, and litigation, and we look forward to helping you with your efforts to recover your investment losses.