Former Miami Dolphins DB Will Allen Accused of Being Involved in Ponzi Scheme

It looked like former NFL defensive back Will Allen had come up with a good way to make a living in his post-NFL life. He and his partner Susan Daub ran Capitol Financial Partners, a company that loaned money to athletes in all major sports; anything ranging from $10K to $5.6 million.

Turns out it was all a Ponzi scheme.

via Twitter

Allen and his partner raised $31 million from investors, but according to the SEC the company only loaned out $18 million. Some they spent living the life at casinos and nightclubs.

“The defendants sold investors on the idea of lending money to pro athletes, but we allege that’s not where a large portion of the investors’ money went,” Paul G. Levenson, director of the SEC’s Boston office, said in a statement. “As in any Ponzi scheme, the appearance of a successful investment was only an illusion sustained by lies.”

The SEC is alleging that the duo have used as much as $7 million to cover personal expenses and fund other ventures. Their biggest borrower, Columbus Blue Jackets defenseman Jack Johnson, has filed for bankruptcy (Chapter 11).

Allen's company had loaned Johnson $3.4 million last year, but Allen told investors the number was closer to $5.65 million.

[PalmBeachPost]

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