Saturday, July 16, 2011

So, Now It's A Ponzi Scheme With Donnan


The HQ has reported previously about the impending bankruptcy of former Georgia head coach Jim Donnan...

Now we know that, apparently, he was involved in a Ponzi scheme when GLC Enterprises of Ohio was soliciting funds. Depending on who you believe, Donnan was either a recruiter of fellow college coaches who knew Donnan and not the goals of GLC, or suckers who padded Donnan's bank account...

From Barr:

According to court documents, investors sank nearly $82 million dollars into GLC Enterprises, but less than $12 million was spent on inventory and at least $13 million in investor money remains unaccounted for. With dwindling revenues, GLC eventually used money from new investors to pay old investors, which, according to the court documents, constituted a Ponzi scheme.

GLC is being restructured under new management. The current operators, who filed Thursday's lawsuit, declined to comment, as did their attorneys.

The Donnans and their family members made more than $14.5 million from GLC in the form of "approximately 293 transfers to James and Mary Donnan or their immediate family members," according to the court documents.

Donnan recruited coaches like Frank Beamer, Tommy Tuberville, Dennis Franchione, and Barry Switzer to be involved in the GLC venture over time.

Here's the lawsuit against the Donnan family...

Either way, this doesn't look good for Donnan the family... and while this may be a signature moment for the coach off the field, here's one of the signature moments of Donnan on the field- against Tennessee...
((HT: ESPN/SEC/youtube))

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