Former Giants cornerback Will Allen helped run a Ponzi scheme that stole millions of dollars from investors, the Securities and Exchange Commission alleged in a lawsuit filed on Tuesday.
The SEC alleged that Allen, a former first-round pick of the Giants who played for them from 2001-05, ran a company called Capital Financial Partners along with Susan Daub that was “in the business of making loans to professional athletes who need money while they wait to get paid under their sports contracts.” The complaint alleged they paid out only $18 million of those short-term, high-interest loans while collecting $31.7 million from investors between July, 2012 and this past February.
In that same period, according to the complaint, which was filed in a Massachusetts District Court last week, “Allen and Daub have withdrawn more than $7 million of the investors' money to pay personal expenses or to fund other business ventures.”
Even worse, at least one of the loans that people invested in was allegedly non-existent. According to the SEC, 24 investors contributed more than $4 million towards a “purported” $5.65 million loan to an unnamed NHL player. And some of them were even shown a promissory note and loan agreement signed by the player.
But the SEC said the loan was “a sham”, and that the player never signed any documents for a $5.65 million loan. The player later filed for bankruptcy and listed Allen and Daub’s company as one of his creditors in the amount of only $3.4 million. Meanwhile, Daub continued to tell investors that the original $5.65 million loan was “performing as expected”, and the investors received returns, even though no loan payments by the NHL player were ever made.
The SEC said Allen and Daub “used false documentation in order to mislead investors as to the terms, circumstances, and even existence ofs ome of the loan transactions in which the investors are induced to participate”
Allen played 10 seasons in the NFL – five with the Giants and five with the Miami Dolphins. He also spent a year with the New England Patriots on their injured reserve list before retiring from football in 2013.
http://www.nydailynews.com/sports/football/giants/ex-giant-allen-helped-run-ponzi-scheme-sec-alleges-article-1.2176369?utm_content=bufferc11c0&utm_medium=social&utm_source=twitter.com&utm_campaign=swalder+twitter
The SEC alleged that Allen, a former first-round pick of the Giants who played for them from 2001-05, ran a company called Capital Financial Partners along with Susan Daub that was “in the business of making loans to professional athletes who need money while they wait to get paid under their sports contracts.” The complaint alleged they paid out only $18 million of those short-term, high-interest loans while collecting $31.7 million from investors between July, 2012 and this past February.
In that same period, according to the complaint, which was filed in a Massachusetts District Court last week, “Allen and Daub have withdrawn more than $7 million of the investors' money to pay personal expenses or to fund other business ventures.”
Even worse, at least one of the loans that people invested in was allegedly non-existent. According to the SEC, 24 investors contributed more than $4 million towards a “purported” $5.65 million loan to an unnamed NHL player. And some of them were even shown a promissory note and loan agreement signed by the player.
But the SEC said the loan was “a sham”, and that the player never signed any documents for a $5.65 million loan. The player later filed for bankruptcy and listed Allen and Daub’s company as one of his creditors in the amount of only $3.4 million. Meanwhile, Daub continued to tell investors that the original $5.65 million loan was “performing as expected”, and the investors received returns, even though no loan payments by the NHL player were ever made.
The SEC said Allen and Daub “used false documentation in order to mislead investors as to the terms, circumstances, and even existence ofs ome of the loan transactions in which the investors are induced to participate”
Allen played 10 seasons in the NFL – five with the Giants and five with the Miami Dolphins. He also spent a year with the New England Patriots on their injured reserve list before retiring from football in 2013.
http://www.nydailynews.com/sports/football/giants/ex-giant-allen-helped-run-ponzi-scheme-sec-alleges-article-1.2176369?utm_content=bufferc11c0&utm_medium=social&utm_source=twitter.com&utm_campaign=swalder+twitter