New Jersey football fans may be shocked to learn that, on April 7, it was reported that a former NFL cornerback was accused of being involved in a Ponzi scheme. According to the authorities, the former player, Will Allen, was accused of using cash given to them by clients to make payments to their investors.
The Ponzi scheme allegedly ran from July 2012 to February 2015. The former player and his alleged co-conspirator reportedly had their investors lend money to pro athletes; however, that money was allegedly used elsewhere. The two men involved in the alleged scheme reportedly raised more than $31 million after telling them that they could earn up to 18 percent in interest.
The Securities and Exchange Commission alleged that the investors were misled. In some cases, it was believed that some of the loans did not exist and that some of the money was used to pay for personal expenses. It was not reported if the former player had been charged, though the SEC noted that assets associated with the reported scheme had been frozen. Additionally, the SEC was reportedly pushing for additional penalties.
Those who are accused of being involved in a Ponzi scheme may potentially face serious consequences, including a jail sentence and expensive fines. Depending on the circumstances of the case, a criminal law attorney may assist with creating a defense for the accused person. For example, they may argue that the accused person was not involved in the scheme at all or they unknowingly were involved. They may also argue that the scheme was masterminded by the co-conspirator and not the accused person.
Source: Investment News, "Ex-NFL cornerback Will Allen accused of running Ponzi scheme," April 7, 2015