Jim Donnan has been accused of defrauding GLC Enterprises and its investors of nearly $28 million in a “far-reaching” Ponzi scheme.According to federal court documents filed last week and obtained by ESPN’s Outside The Lines, Donnan recruited high-profile college coaches to invest in the company. He pitched GLC as a “retail liquidation company, with its principal business being the re-sale of consumers products.”
Donnan and his wife made a 15%-20% commission on each new investment they solicited.
Of the $82 million GLC amassed in investments since its founding in 2004, less than $12 million was spent on inventory and $13 million in investment money is unaccounted for, according to the documents.
GLC filed for Chapter 11 in February. The new management of the company filed the lawsuit against Donnan.
The lawsuit also names Donnan’s wife, his three children, and their spouses. The Donnan family made more than $14.5 million from GLC, according to court documents, but their attorney told ESPN, “[Donnan’s children] didn’t have a damn thing to do with this.”
The attorney went further, saying, “The suggestion that Jim Donnan was aware of a Ponzi scheme is totally false.”
Donnan coached Georgia from 1996 to 2000, and has worked for ESPN as a commentator. He was inducted into the College Football Hall of Fame in 2009.
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