SEC files fraud charges against ex-NFL cornerback Allen, partner; says they ran Ponzi scheme

Published May 03, 2016

Federal regulators have filed civil fraud charges against former NFL cornerback Will Allen and his business partner. They're accused of reaping more than $31 million in a Ponzi scheme that promised high returns to investors from funding loans to cash-strapped pro athletes.

The Securities and Exchange Commission announced the charges Monday against William D. Allen, Susan Daub and their investment firms.

The SEC said Allen and Daub paid about $20 million to investors but received only around $13 million in loan repayments from athletes. To make up the gap they paid investors with other investors' money rather than actual profits on the investments, in a classic Ponzi scheme, the agency said.

Allen couldn't be reached for comment. A person answering the phone at Daub's home said there was no comment.

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https://www.foxnews.com/us/sec-files-fraud-charges-against-ex-nfl-cornerback-allen-partner-says-they-ran-ponzi-scheme