Past UGA Coach Jim Donnan Indicted For GLC Limited Ponzi Scheme
Ex University of Georgia Coach Jim Donnan Indicted on 85 Charges in Alleged Ponzi Scheme
Former University of Georgia football coach Jim Donnan and an Ohio business partner have been charged with operating a multi-million-dollar Ponzi scheme, according to a federal indictment unsealed yesterday.
The 85-count indictment accuses UGA's Jim Donnan and Gregory L. Crabtree, of Proctorville, Ohio, of fraudulently raising more than $81 million from 94 investors over a period of approximately three years. Authorities say Donnan and Crabtree ran the alleged Ponzi scheme through GLC Limited, Inc., a West Virginia-based wholesale liquidation company.
As the president of the company, Crabtree managed the company’s day-to-day operations. Donnan’s job allegedly was to recruit investors, many of whom, authorities say, handed over their money because they trusted Donnan.
Though the indictment only identifies individual investors by their initials, the SEC’s 2012 complaint against Donnan and Crabtree alleged that Donnan solicited investments from contacts he had made during the course of his career, including other high-profile coaches and his former players.
“Your Daddy is going to take care of you,” Donnan allegedly told one former player. “If you weren’t my son, I wouldn’t be doing this for you.”
The player subsequently invested $800,000 with Donnan, according to the SEC.
Donnan allegedly told potential investors they would receive profits of up to 200 percent in a matter of months. Instead of using the funds to purchase liquidated items as represented, however, Donnan and Crabtree allegedly used investors’ money for their own purposes and to make Ponzi-style payments to earlier investors.
The men face charges of mail fraud, wire fraud, conspiracy, and money laundering, among others.