SEC Charges Former Pro Football Player with Fraud for Running Ponzi Scheme Involving Loans to Athletes

The SEC announced fraud charges against a former professional football player and others who allegedly operated a Ponzi scheme that raised more than $31 million from investors who were promised profits from loans to professional athletes.

According to the SEC's complaint, former Miami Dolphins cornerback Will Allen and his business partner claimed to make loans to professional athletes who were short of cash, and promised investors that they could profit from funding the loans and receiving interest paid by the athletes of up to 18 percent. The two individuals allegedly misled investors about the terms, circumstances and existence of some of the loans and used investors' funds to pay for personal expenses, such as charges at casinos and nightclubs, and to finance other business ventures.

See: SEC Complaint; SEC Press Release.