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Former NFL Cornerback Will Allen Indicted for Operating a Ponzi Scheme

April 8, 2015  |  Posted by: JammedUp Staff
Former NFL Cornerback Will Allen Indicted for Operating a Ponzi Scheme

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WASHINGTON (AP) – Federal investigators filed civil fraud charges against former NFL defensive back Will Allen and a business partner. The announcement made Monday by the Securities and Exchange Commission.

Feds accuse Allen and his partner of running a Ponzi scheme, which defrauded investors out of $31 million.

The plan guaranteed a high return to investors, whose money would be used to fund loans to cash-strapped professional athletes.

According to the SEC, Allen, Susan Daub and their Capital Financial Partners paid about $20 million to investors. However, they only received around $13 million in loan repayments from athletes, leaving a financial gap.

Allen, 36, and his co-defendant allegedly used money from other investors’ instead of actual profits on the investments, in order to make up the financial difference, indicating a classic Ponzi scheme, the agency said.

Representatives of Allen or Daub have not commented on the charges.
Allen played defensive back for the New York Giants, Miami Dolphins and New England Patriots from 2001-2012.

Daub, 54, is a financial advisor who lives in Florida.

According to court documents filed by The SEC, Allen and Daub misled the investors regarding the terms and existence of the loans.

The pair promised Investors a return of 18 percent from the loans made to athletes.

Feds alleged both Allen and Daub used the illicit funds to pay off personal charges made at casinos, nightclubs and to finance separate business ventures.

The government filed the sealed lawsuit against Allen and Daub in a Boston federal court last week, unsealed on Sunday.

The SEC Issued a warrant freezing the assets belonging to the both Boston-based firms and sought an injunction against Allen and Daub. In addition, the government will seek unspecified penalties and restitution of the ill-gotten gains.

Paul Levenson, director of the SEC’s regional office said in a statement, “As is any typical Ponzi scheme, it gives the appearance of a successful investment, but the truth is, it’s an illusion sustained by lies.

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