Ex-UGA coach Jim Donnan charged in Ponzi scheme
ATLANTA — Former University of Georgia football coach Jim Donnan and a business partner face charges that they operated a Ponzi scheme, according to federal indictment unsealed Tuesday.
The grand jury last week returned the 85-count indictment against Donnan and Gregory L. Crabtree of Proctorville, Ohio. The charges include conspiracy, mail fraud and wire fraud, among others.
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The indictment says the pair ran the scheme through GLC Limited, Inc., a West Virginia-based company that dealt in closeout merchandise. Crabtree was president of the company and was responsible for its day-to-day operation, while Donnan's main role was to recruit investors, the indictment says. The pair offered and sold short-term investments, and promised investors rates of return ranging from 50 percent to 200 percent.
Investors generally weren't given much information about the deals but threw their money in because they trusted Donnan. He and Crabtree routinely lied to investors about the nature of the business, the indictment says.
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http://www.ajc.com/news/ap/georgia/ex-uga-coach-jim-donnan-charged-in-ponzi-scheme/nXNgX/
