Former University of Georgia football coach (1996 to 2000) Jim Donnan has agreed to a proposed bankruptcy settlement
with a West Virginia company and investors who say the ex-coach owes them $40 million lost in a Ponzi scheme, according to documents filed in federal court.
"Donnan was a major and early investor in GLC Limited, which would buy appliances and furniture for resale and promised investors payouts of 50 to 70 percent interest annually. The company says Donnan not only profited from money he put into GLC, but also charged commissions of up to 20 percent for recruiting fellow college coaches and others to invest money in the firm.
Unable to keep pace with the promised payouts, GLC filed for bankruptcy protection in 2011, and Donnan soon did likewise."
The deal would require Donnan to repay $7.35 million to retail liquidation company GLC Limited, which says it's owed more than $13 million by the ex-coach. Donnan would also agree to repay 80 percent of the losses of investors he recruited for GLC. Investors had filed claims saying Donnan owned them about $27 million.