Quote:
Originally Posted by Anyong Bluth
Allen was originally hit with civil fraud charges in April after authorities uncovered the scheme, which involved Allen making high-interest, short term loans to other athletes during the offseason.
Allen didn't personally have the money to loan, so he would raise the money from investors, who would pay him because Allen would promise an 18 percent return. Once Allen had the money from the investors, he would use it on himself.
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If he never gave the money to anyone, does it matter if he didn't have the money to loan? And if he merely used the money on himself, is it really a Ponzi scheme or is it just theft?