{"id":3030,"date":"2015-04-08T00:00:00","date_gmt":"2015-04-08T04:00:00","guid":{"rendered":"http:\/\/silverlaw.lawblogger.net\/blog\/sec-charges-former-nfl-player-and-his-business-partner-in-32-million-ponzi-scheme-involving-loans-to-professional-athletes\/"},"modified":"2017-07-27T15:26:20","modified_gmt":"2017-07-27T19:26:20","slug":"sec-charges-former-nfl-player-and-his-business-partner-in-32-million-ponzi-scheme-involving-loans-to-professional-athletes","status":"publish","type":"post","link":"https:\/\/www.silverlaw.com\/blog\/sec-charges-former-nfl-player-and-his-business-partner-in-32-million-ponzi-scheme-involving-loans-to-professional-athletes\/","title":{"rendered":"SEC Charges Former NFL Player and His Business Partner in $32 Million Ponzi Scheme Involving Loans to Professional Athletes"},"content":{"rendered":"<p>A federal court in Boston has unsealed a civil lawsuit filed earlier this month by the U.S. Securities and Exchange Commission (\u201cSEC\u201d) against a former professional football player and his business partner for allegedly defrauding at least 40 investors out of as much as $14 million, alleging the business partners operated a Ponzi scheme that bilked investors who were promised profits from loans to professional athletes.<\/p>\n<p>According to the SEC\u2019s lawsuit, former professional football player William (\u201cWill\u201d) D. Allen \u2014 a former first round draft pick who played in the NFL with the New York Giants, the Miami Dolphins, and the New England Patriots and who now resides in Davie, Florida \u2014 and his business partner, Susan C. Daub \u2014 a financial professional formerly of Acton, Massachusetts who now lives in Coral Springs, Florida \u2014 claimed to make loans to professional athletes who were short of cash in the off-season or early in the season.\u00a0 Allen and Daub allegedly told investors that they could profit by funding the loans and receive interest of up to 18 percent paid by the athletes.\u00a0 Under that framework, Allen and Daub raised nearly $32 million from investors while advancing only $18 million in loans to athletes.\u00a0 From July 2012 through February 2015, the investment program paid $20 million to investors while receiving a little more than $13 million in loan repayments from athletes.\u00a0 To fill the nearly $7 million gap, Allen and Daub used money from some investors to pay other investors \u2014 the hallmark of a Ponzi scheme.<\/p>\n<p>In addition, Allen and Daub allegedly misled investors about the terms of some of the loans and, in one clear instance, purportedly falsified the existence of one of the loans.\u00a0 According to the SEC, 24 of Allen and Daub\u2019s investors collectively contributed nearly $6 million toward a purported loan to a National Hockey League player.\u00a0 Although the player is real and the money was collected from the investors, no documentation corroborates that any such loan in that amount ever existed.\u00a0 Allen and Daub are purported to have used some investor funds to pay personal expenses, such as charges at casinos, nightclubs, and pawn shops; or to fund other business ventures.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.silverlaw.com\/blog\/sec-charges-former-nfl-player-and-his-business-partner-in-32-million-ponzi-scheme-involving-loans-to-professional-athletes\/\"  title=\"Continue Reading SEC Charges Former NFL Player and His Business Partner in $32 Million Ponzi Scheme Involving Loans to Professional Athletes\" class=\"more-link\">Continue reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>A federal court in Boston has unsealed a civil lawsuit filed earlier this month by the U.S. Securities and Exchange Commission (\u201cSEC\u201d) against a former professional football player and his business partner for allegedly defrauding at least 40 investors out of as much as $14 million, alleging the business partners operated a Ponzi scheme that [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[593],"tags":[],"class_list":["post-3030","post","type-post","status-publish","format-standard","hentry","category-ponzi-schemes"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Did you lose Money with Former NFL Player William Allen? 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