Former Miami Dolphins Player ChargedAugust 15th 2015
Former Miami Dolphins player, Will Allen, charged in professional athlete Ponzi scheme. Here is the full story provided originally by South Florida Business Journal.
“The U.S. Attorney for the District of Massachusetts charged former Miami Dolphins cornerback Will Allen on July 9 for running an alleged $32 million Ponzi scheme involving professional athletes.”
Allen, 36, and his co-conspirator in the alleged fraud Susan Daub, 55, were indicted on twelve counts of wire fraud, one count of conspiracy to commit wire fraud and six counts of identity theft. Allen and Daub were also charged with money laundering, four counts for Allen and one for Daub.
Allen’s listed attorney Oscar Cruz declined to comment.
The Securities and Exchange Commission charged Allen and Daub on April 1 with allegedly operating the multi-million Ponzi scheme. To read more about the SEC charge, click here. An arrest warrant for Allen and Daub was issued on June 10.
Davie resident Allen and Coral Springs resident Daub managed Capital Financial Partners LLC, a private lending firm registered at 470 Atlantic Ave., Boston, Massachusetts, according to the indictment.
Capital Financial advertised private lending and short-term loans to professional athletes on its website as recently as March 2015, according to the indictment. The average athlete loan was for $600,000 on a 12-month term at favorable rates. The minimum loan was $75,000. Allen and Daub also reportedly managed other related companies registered in Florida and Massachusetts.
Between about June 2012 and March 2015, Allen and Daub raised money from investors, telling them that their funds would be loaned to professional athletes at high interest rates, according to the indictment. That occurred sometimes, but Allen and Daub also allegedly used investor money for personal benefit and to pay off other investors. At times, they reportedly oversubscribed investments and collected more money than was being loaned.
Allen and Daub allegedly collected millions of dollars more than they loaned to athletes, according to the indictment.
Between 2001 and 2012, Allen played football for the Dolphins and New York Giants. Allen signed a one-year contract with the New England Patriots in 2012, according to the U.S. Attorney’s Office. Daub, currently a resident of Coral Springs, founded the three Capital Financial ventures, according to the SEC complaint.
If a Grand Jury finds Allen and Daub responsible in any of the charges, both may need to forfeit the funds or any property purchased with the funds obtained through the alleged fraud. Allen and Daub may also face prison time.”
-Original story posted on www.bizjournals.com on July 14th 2015