The Securities and Exchange Commission cracked down on two lowlifes who allegedly preyed on athletes needing loans. According to Aruna Viswanatha of the Wall Street Journal, one of those lowlifes is ex-NFL CB Will Allen.
According to the SEC, Allen and a woman named Susan Daub, whom he worked with, operated a $31 million Ponzi scheme called Capital Financial Partners. The pair told investors they could receive interest up to 18 percent from MLB, NFL, NBA and NHL players. The pair is accused of paying investors from money received from other investors instead of through actual business income.
"As in any Ponzi scheme, the appearance of a successful investment was only an illusion sustained by lies," said Paul Levenson, who heads the SEC's Boston office, which investigated the case.
The pair is said to have used the money they earned on trips to pawn shops, casinos and nightclubs.
According to Viswanatha's report, one NHL player received a loan from Allen and Daub in the amount of $3.4 million. They told investors that the loan was for $5.65 million. The NHL player eventually filed for bankruptcy.
Allen was a former first-round pick of the New York Giants. He played 10 seasons in the league as members of the Giants, Dolphins and Patriots.
