Former NFL busted for Ponzi scheme

[Anyong Bluth]

Holy shit! I would have never imagined this guy would ever dream of pulling something like this off. I've talked to him dozens of times and hung around the guy on more than one occasion when I was working for Condon.

Actually a pretty chill dude.

Former NFL DB facing 200+ years in prison
By John Breech / CBSSports.com
July 14, 2015 07:38 PM ET

Will Allen has been indicted on 23 federal charges. (USATSI)




Former NFL defensive back Will Allen has been indicted on 23 federal charges, stemming from a $32 million Ponzi scheme he allegedly ran from July 2012 to February 2015.

If convicted, the 36-year-old could be spending the rest of his life in prison.

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.

Authorities believe that Allen and his business associate, Susan Daub, made almost $32 million while running the Ponzi scheme.

Under the federal indictment, which was first obtained by the Palm Beach Post, Allen is facing a total of 23 felonies for his role in the Ponzi scheme.

The indictment includes "12 counts of wire fraud, six counts of aggravated identity theft, one count of conspiracy to commit wire fraud and four counts of illegal monetary transactions."

According to the Palm Beach Post, Allen is facing up to 20 years in prison for each count of wire fraud, which means Allen's looking at 240 years behind bars for those charges alone. The former first round pick has been behind bars since his arrest in June.

Allen, who spent 10 years in the NFL after being selected by the Giants with the 22nd overall pick in 2001, played five seasons in New York and five seasons in Miami.

As for the indictment, you can read all 17 pages of the document below (via Deadspin).

http://www.cbssports.com/nfl/eye-on-...ears-in-prison


Copy of the complaint filed against him:
http://www.scribd.com/mobile/doc/271585023/willallen

[Lex Luthor]

Originally Posted by aturnis

Right, but he ain't white. 'Murica.

No need to play the race card. Bernie Madoff, white guy, got 150 years for his Ponzi scheme.

[ChiTown]

Originally Posted by eDave

His posts have gotten odd overall for some reason.

You're just now noticing this? n00b's.......

[Chiefs4TheWin]

"aggravated identity theft" would love to see the difference between this and "identity Theft"

[ChiliConCarnage]

Originally Posted by Brainiac

No need to play the race card. Bernie Madoff, white guy, got 150 years for his Ponzi scheme.

That's because white people aren't America's #1 most protected class. That would be banks, hedge funds, finance groups. Madoff cost them billions

On topic, guys making millions a year taking out loans at 18%
No wonder so many of these guys are broke 2 years after their career ends. Amazingly short-sighted.. basically living paycheck to paycheck in a career you know will last a max of maybe 15 years.

[Amnorix]

Originally Posted by Smed1065

White collar crime usually 5 years and restitution, which rarely happens beyond what they froze during indictment.

Tell that to Bernie Madoff.

I've dealt with several ponzi schemes (specifically, the civil suits that inevitably result, trying to drag in others who "should have known" that this guy was committing a ponzi scheme), and it all depends on the size of the scheme, the number of people impacted, and a number of other victims. While ponzi schemes are a white collar crime, I would be surprised if they fall within your "five years and restitution" rule.

Although I saw at least one ponzi scheme operator get off ridiculously light. Disgusting.

[Amnorix]

Originally Posted by Rain Man

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?

It's theft either way.

But usually the ponzi scheme operator is also using a portion of the ponzi-scheme funds to fund his own life well beyond what would normally be possible.

[aturnis]

Originally Posted by Brainiac

No need to play the race card. Bernie Madoff, white guy, got 150 years for his Ponzi scheme.

True. He did. The comment was mostly sarcasm and a dumb joke. But banking execs the country and world over pull shit like this and get nothing.

[Valiant]

Sad. Coming down on him hard. But wont touch banks and other corporations.

[KC native]

Originally Posted by Amnorix

Tell that to Bernie Madoff.

I've dealt with several ponzi schemes (specifically, the civil suits that inevitably result, trying to drag in others who "should have known" that this guy was committing a ponzi scheme), and it all depends on the size of the scheme, the number of people impacted, and a number of other victims. While ponzi schemes are a white collar crime, I would be surprised if they fall within your "five years and restitution" rule.

Although I saw at least one ponzi scheme operator get off ridiculously light. Disgusting.

Yes, the Feds tend to usually come down hard on Ponzi operators.

[Anyong Bluth]

Not to derail the topic, but it's a joke no one on Wallstreet got busted except 1 guy who was very low on the totem pole.

You can like or not like Elliott Spitzer on a personal level, but at least when he was a prosecutor he actually went after Wallstreet aggressively. Even bringing consumer suits as banks were constantly hiking up service fees for things like atm withdrawals. Some were charging 5+ bucks just to get money, and those atms in convenience stores as much as $10.

Pretty telling when the big companies on Wallstreet paid for an all out assault to get him out as prosecutor. Hiring private investigators to dig through his entire life, while others would follow him day and night to get anything they could on the guy.
Which is how the media was handed his rec time with call girls on a silver platter.

All so Wallstreet could get back to dirty business as usual.

[ForeverChiefs58]

Scheming people out of money is worse than murder apparently.

I thought it was telling the very next story on news was:

Former Auschwitz guard, convicted as accessory to murder

On Wednesday, a court ruled that he was guilty of being an accessory to the murder of 300,000 Jews and sentenced him to four years in prison.

In their verdict, judges went beyond the 3 ½-year sentence prosecutors sought, and said
Groening was part of the "machinery of death," helping the camp function and also collecting money stolen from the victims to help the Nazi cause.

Both sides have a week to appeal, and both prosecutors and the defense said they would consider whether to do so. Defense lawyer Hans Holtermann said Groening remains free in the meantime, and given his age and the possible length of appeal proceedings it was uncertain whether he would actually go to prison.


http://news.yahoo.com/former-auschwi...075738937.html

[KC native]

Originally Posted by Anyong Bluth

Not to derail the topic, but it's a joke no one on Wallstreet got busted except 1 guy who was very low on the totem pole.

You can like or not like Elliott Spitzer on a personal level, but at least when he was a prosecutor he actually went after Wallstreet aggressively. Even bringing consumer suits as banks were constantly hiking up service fees for things like atm withdrawals. Some were charging 5+ bucks just to get money, and those atms in convenience stores as much as $10.

Pretty telling when the big companies on Wallstreet paid for an all out assault to get him out as prosecutor. Hiring private investigators to dig through his entire life, while others would follow him day and night to get anything they could on the guy.
Which is how the media was handed his rec time with call girls on a silver platter.

All so Wallstreet could get back to dirty business as usual.

I'm a finance professional and have a huge issue with the fact that no one has gone to jail for activities that were clearly illegal at the time.

[Anyong Bluth]

Originally Posted by KC native

I'm a finance professional and have a huge issue with the fact that no one has gone to jail for activities that were clearly illegal at the time.

It's sort of like the saying goes...

Kill 1, you're a murderer
Kill a handful, you're a serial killer
Kill 100's of thousands, you're the leader of a country.

Instead :
Steal a couple bucks, you're a thief
Steal a couple thousand, you're a con man.
Steal a couple 100 thousand, you're an embezzler
Steal a few million, you work on Wallstreet
Steal a couple billion, you run a big bank / investment firm.
... and have a great shot at being a future Treasury Secretary.

[Smed1065]

Originally Posted by Amnorix

Tell that to Bernie Madoff.

I've dealt with several ponzi schemes (specifically, the civil suits that inevitably result, trying to drag in others who "should have known" that this guy was committing a ponzi scheme), and it all depends on the size of the scheme, the number of people impacted, and a number of other victims. While ponzi schemes are a white collar crime, I would be surprised if they fall within your "five years and restitution" rule.

Although I saw at least one ponzi scheme operator get off ridiculously light. Disgusting.

Believe it also matters that he (BM)cost companies losses versus just millionaires.