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xNFL CB Will Allen bust for running a $31million Ponzi Scheme
Posted on 4/7/15 at 1:59 pm
Posted on 4/7/15 at 1:59 pm
quote:
Former NFL player Will Allen and a business associate ran a Ponzi scheme that bilked investors in an alleged fraud based on loans to pro athletes who were short of cash, a federal regulator said Tuesday.
Allen, Susan Daub and their Capital Financial Partners firms raised more than $31 million from investors who were promised annual interest rates as high as 18% on the loans, the Securities and Exchange Commission said in unsealing a federal fraud complaint.
The operation allegedly raised approximately $31.7 million from at least 40 investors from July 2012 through February 2015. But Capital Financial advanced approximately $18 million to athletes during that time, the SEC charged.
USA Today
8
Posted on 4/7/15 at 2:02 pm to TigerintheNO
Ohio state TPOS 
Posted on 4/7/15 at 2:03 pm to goldenbadger08
He went to Syracuse
Posted on 4/7/15 at 2:14 pm to TigerintheNO
quote:
loans to pro athletes who were short of cash,
Well, you can't blame investors for thinking this would be a lucrative opportunity
Posted on 4/7/15 at 2:22 pm to TigerintheNO
He can use concussions as an excuse like every other ex-NFL player does when they get caught.
Posted on 4/7/15 at 2:23 pm to TigerintheNO
I literally read that in the American Greed dude's voice without even thinking about it
Posted on 4/7/15 at 2:39 pm to goldenbadger08
quote:
Ohio state TPOS
What a crybaby bitchass, hack you are
This post was edited on 4/7/15 at 2:41 pm
Posted on 4/7/15 at 2:43 pm to goldenbadger08
quote:my god
Ohio state TPOS
Posted on 4/7/15 at 3:08 pm to Jim Rockford
quote:
Well, you can't blame investors for thinking this would be a lucrative opportunity
I mean, guy who didn't pay attention in school that now has to take out a loan but somehow can't get that loan through a bank, but they will pay back presumably more than the 18% in interest. Yeah, sure sounds like a real strong portfolio investment
Posted on 4/7/15 at 3:10 pm to goldenbadger08
quote:
Ohio state TPOS
Too bad this isn't the Ohio State Will Allen.
Posted on 4/7/15 at 3:12 pm to KillerNut9
And that NHL player loan was to Jack Johnson. Poor guy can't put his money issues in the past.
Posted on 4/7/15 at 4:06 pm to TigerintheNO
So he defrauded people who thought were investing in a predatory loan scheme?
Wow...ultimate TPOS.
Wow...ultimate TPOS.
Posted on 4/7/15 at 4:11 pm to TigerintheNO
Who did these investors think they were? fricking Western Sky Loans?
Posted on 4/7/15 at 4:17 pm to TigerintheNO
Hey, the government does it. It's called Social Security.
Posted on 4/7/15 at 4:19 pm to TigerintheNO
quote:
bilked investors in an alleged fraud based on loans to pro athletes who were short of cash
Preying on jackasses
.Posted on 4/7/15 at 4:21 pm to Feral
quote:
So he defrauded people who thought were investing in a predatory loan scheme?
pretty much, that and they were really stupid
pitch on the website-
In many cases, athletes' contracts do not allow them to access their guaranteed money during the off season or early in the season when they may need a significant sum to purchase a house or car, pay the bills, or meet a financial demand. By pooling the resources of a network of investors, CFP gives athletes access to money when they need it while providing investors with solid, short-term returns on investment.
The deal-
Capital Financial advertises that its loans begin at $75,000 and that athletes typically borrow $600,000 for a twelve-month period. According to the website, the stated interest rate on the loans ranges from 9% to 18%. Because some loans are for only a few months, the annualized interest rate can exceed 100% in some cases.
Too good to be true-
Capital Financial typically provides them with information about the athlete' s sports contract, including whether the
amounts that the team owes to the athlete are guaranteed. Investors are often led to believe that
their investment with Capital Financial is backed by the athlete's contract, meaning that Capital
Financial receives repayments directly from the athlete' s team or could do so if necessary.
I don't know what is worse, that people invested in these 2 companies or that athletes actually borrowed from them.
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