Back in July, there was a very strange story involving former Georgia coach Jim Donnan and his supposed involvement in a Ponzi scheme that resulted in a lawsuit against certain members of Donnan’s family.
According to a combination of court documents and testimonies, Donnan was a financial investor in a West Virginia-based company by the name of GLC Ltd., which was reportedly pitched by Donnan as a retail liquidation company. However, the lawsuit filed against Donnan’s family by the current operators of GLC claim that Donnan was an officer in the company.
A report from ESPN claimed “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.”
Investors in GLC included current college football coaches Frank Beamer and Tommy Tuberville.
In a follow up story on the situation, further court documents and sources close to Outside the Lines claim that the FBI and the IRS are now looking into the alleged Ponzi scheme. Federal authorities and Donnan’s representation have declined to comment.
What the two entities are looking for, and what would happen to Donnan if they find it, is still up in the air.
Donnan and his wife, as well as GLC, have already filed for Chapter 11 bankruptcy in an Ohio federal court. Donnan is currently being asked to pay $8.25 million to creditors.