There’s a very bizarre story coming out of Ohio this week as former Georgia coach Jim Donnan has been accused of making millions of dollars off a Ponzi scheme stemming from a company by the name of GLC Ltd. (known as GLC Enterprises upon its foundation in 2004).
Court documents obtained by ESPN state that Donnan and his wife “solicited investments from more than 50 individuals and entities to GLC”, which Donnan reportedly “pitched” as a retail liquidation company and a re-seller of consumer products. In all, Donnan and his family — including Donnan’s children and their spouses — reportedly made roughly $14.5 million from GLC in the form of several “fraudulent transfers” to “James and Mary Donnan or their immediate family members.”
The company, however, filed for Chapter 11 bankruptcy in an Ohio federal court in February. Donnan and his wife then filed for bankruptcy earlier this month. The current operators of GLC filed a lawsuit against Donnan’s children and their spouses Thursday (Donnan’s lawyer, Edward Tolley, claims a suit against Donnan and his wife would be a direct violation of federal bankruptcy law).
Donnan’s role in GLC is currently being disputed in the suit. Tolley confirms that Donnan was an investor of over $5 million in GLC, but denies that his client was ever an officer in the company. Tolley also denies that Donnan knew he was involved in a Ponzi scheme.
Surprisingly, a few high-profile coaches were also mentioned as investors in GLC — Oklahoma coach Barry Switzer, Virginia Tech coach Frank Beamer, Texas State coach Dennis Franchione and Texas Tech coach Tommy Tuberville.
According to the ESPN report, “investors sank nearly $82 million dollars into GLC Enterprises but less than $12 million was spent on inventory and at least $13 million in investor money remains unaccounted for. With dwindling revenues, GLC eventually used money from new investors to pay old investors, which, according to the court documents, constituted a Ponzi scheme.”
Donnan, who is an ex-ESPN analyst, also coached under Switzer at Oklahoma and was the head coach of Marshall from 1990-95 before moving on to Georgia.
Texas’ plunder of Baylor’s recruiting class continues
Make that four new additions to Texas’ 2016 recruiting class in late June.
The school announced Wednesday that Patrick Hudson, an in-state offensive lineman from Silsbee, has signed a financial aid agreement and is expected to enroll in Austin in July when the second summer session begins.
Hudson is a four-star prospect and the 50th-best player in the country according to 247Sports’ composite rankings.
He signed with Baylor in February but was granted a release from his letter of intent after a report accusing members of the school and athletics department of mishandling accusations and incidents of sexual assault delved the school into controversy.
J.P. Urquidez and brothers Devin and Donovan Duvernay also signed with the Longhorns in the past week.
“We’re really excited to have Patrick joining our program,” Texas coach Charlie Strong said in a release. “Patrick coming to Texas, along with J.P. and Donovan earlier this week, are tremendous additions to an already impressive class of 2016. Patrick and J.P. are two big, physical, talented linemen, and Donovan is an explosive athlete who has played on both sides. We’re looking forward to getting them on campus and working with the team.”
Urquidez is also a four-star offensive lineman while Devin Duvernay is a four-star receiver and Donovan Duvernay is a three-star athlete per 247Sports.
Texas’ class is ranked seventh nationally and No. 1 in the Big 12 as Strong looks to put a rocky start to his tenure behind him and return the Longhorns to national prominence.
They start the season with a visit from Notre Dame on Sept. 4.
Northwestern remembers Randy Walker 10 years after his passing
The Mississippi football program might not find out its NCAA fate very soon, but the rest of the world learned more specifics regarding the accusations the Rebels face Wednesday.
Sports Illustratedpublished the results of its investigation, including specific allegations levied by a man in the process of getting a divorce from the mother of star offensive lineman Laremy Tunsil.
Lindsey Miller detailed several potentially serious violations involving Tunsil and his family, and SI was able to view some of the information he says he turned over to the NCAA during extensive interviews.
The NCAA’s Notice of Allegations is consistent with Miller’s claims in numerous places, including 12 occasions of free lodging that totaled $2,253. Miller says he told the NCAA those nights were arranged by boosters he met through [Mississippi DL coach Chris] Kiffin, but the NCAA never found that link. Kiffin’s name appears 13 times in the Notice of Allegations, but none of those prove he set Miller up with boosters.
Tunsil was part of a surprisingly star-studded recruiting class in 2013, but head coach Hugh Freeze has consistently defended his program against accusations his recruiting success was thanks to illegal methods.
Freeze, who took over as coach in December 2011, may minimize the NCAA’s case, but nine of the 13 football allegations relate to his tenure there. (Four allegations, including fraudulent ACT scores, occurred under former coach Houston Nutt.) There are four Level I violations under Freeze and a significant Level II failure to monitor charge in which the NCAA says the athletic department and football program failed to monitor Tunsil driving three different loaner cars between August 2014 and June 2015. (That latter allegation is the one Ole Miss is disputing.)
Perhaps complicating matters is the fact Miller went to the NCAA only after having a fallout with Tunsil and his mother, Desiree Polingo, during the summer of 2015.
Polingo denied Miller’s accusations via a statement to SI, and in another statement a lawyer for Tunsil told SI, “You have to consider the source.”
Mississippi has already admitted to 12 of the 13 allegations and self-imposed penalties, but it remains to be seen if the NCAA Committee on Infractions will find the punishment sufficient or more is added.
The full SI story goes into deeper detail about the situations facing not only Ole Miss athletics but also the NCAA enforcement model itself.
NCAA announces common-sense change to bowl selection process
The NCAA Division I council announced 5-7 teams will still have a chance to make a bowl this fall.
They will have to wait until all of the 6-6 teams have been picked, though.
The common sense rule tweak was announced Wednesday.
Nebraska, Minnesota and San Jose State all made bowls last season despite finishing the regular season 5-7, and coincidentally they all won.
In a statement, Big 12 commissioner Bob Bowlsby, who serves as chair of the football oversight committee, said the postseason selection process “makes sense and is fair to the schools and the bowls.”
APR scores will continue to be used to designate which 5-7 teams are eligible to take up the bowl slots left available after all of the 6-6 teams have been selected.
After swelling to 41 games last season, the postseason is not set to expand again until at least the 2020 season as a result of a moratorium on the certification of new bowls was established by the council in April.