If you had forgotten about former Georgia coach Jim Donnan and his bizarre Ponzi scheme, it’s quite alright. We did too. Donnan had been out of the news for almost a year until his name reappeared in the headlines on Saturday.
Hopefully for Donnan’s sake, it’ll be the last time.
The Associated Press reports Donnan has finally agreed to a proposed bankruptcy settlement with the company GLC Ltd. (known as GLC Enterprises upon its foundation in 2004). Donnan used to be a major investor with the company, which made its money in retail liquidation.
Per the AP, “The deal would require Donnan to repay $7.35 million to retail liquidation company GLC Limited, which says it’s owed more than $13 million by the ex-coach. Donnan would also agree to repay 80 percent of the losses of investors he recruited for GLC. Investors had filed claims saying Donnan owned them about $27 million.”
The company alleges Donnan not only turned a tremendous profit from GLC, but charged commission to others he convinced to invest in the company. Donnan has denied any such scheme. GLC filed for Chapter 11 bankruptcy in February of last year and Donnan did the same in the following months.
The agreement still needs approval of a judge in Georgia and a hearing is scheduled for July 19.