Former New York Giants cornerback Will Allen is facing federal fraud charges for his alleged role in a $31 million Ponzi scheme, according to a report from the Wall Street Journal.
Allen, a 2001 first-round pick by the Giants, out of Syracuse University, played five seasons and then five more with the Miami Dolphins.
The SEC alleges that Allen and a business partner, Susan Daub, ran a scheme "purported to loan money to professional athletes." The SEC is charging that Allen and Daub were "paying some investors from money received through other investors, rather than from legitimate business income."
Here is more from the WSJ:
The pair raised $31 million from at least 40 investors but allegedly misled them about the terms of the loans. They used investor funds to pay for personal expenses, including charges at pawn shops, casinos and nightclubs, according to the complaint.
"As in any Ponzi scheme, the appearance of a successful investment was only an illusion sustained by lies," said Paul Levenson, who heads the SEC's Boston office, which investigated the case.