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Will Allen Indicted on 23 Felonies in Fraud Case


Mr. P

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Former NFL cornerback Will Allen is facing decades in prison after being indicted on 23 felony counts stemming from an alleged Ponzi scheme run by the 36-year-old and a co-conspirator.

Allen faces "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 records obtained by Jeff Ostrowski of the Palm Beach Post. Each charge of wire fraud could result in a 20-year prison sentence, according to Ostrowski, with shorter sentences for the other felonies.

Prosecutors allege Allen and Susan Daub were the heads of a business, Capital Financial Partners, that offered short-term loans to professional athletes but ultimately defrauded investors of nearly $14 million. Of the $31.7 million obtained from investors, only $18 million went to the loans.

“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 (via Ostrowski). “As in any Ponzi scheme, the appearance of a successful investment was only an illusion sustained by lies.”

Allen played 12 NFL seasons, most of which came with the New York Giants and the Miami Dolphins.

Daub, 54, has been charged with 20 felonies in the case.

 

http://bleacherreport.com/articles/2522665-will-allen-indicted-on-23-felonies-in-fraud-case-latest-details-and-reaction?utm_source=twitter.com&utm_medium=referral&utm_campaign=programming-national

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

He has now caught more felonies than he did interceptions.

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12 year NFL career, made at least $12 million from the Dolphins alone. All you have to do is sit back and count your money for the rest of your life. Enjoy yourself within a framework of financial prudence. But no. Not enough for Allen, got to risk it all on allegedly defrauding people out of their money. Now probably going to prison. Good for you, man. Hope you're proud of yourself.

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It'd be interesting to know which athletes he supposedly loaned money to. It's actually not a bad business plan, short term loans to pro athletes given they move constantly - buying/selling houses, cars, etc. Problem occurs when you're not being honest with those funding your business.

 

Think about starting any business. You get investors to put up capital to start you out. What happens if you have too many investors? In other words, you have more cash than you need. Do you return those funds to your investors or do you keep it for your business? If you're keeping it for your business, isn't it yours to use?

 

Thing is, when the investors aren't seeing a return on their investments, they begin to ask questions. And when they realize the funds are being used more for personal expenses and less for business expenses - then you're screwed.

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Think about starting any business. You get investors to put up capital to start you out. What happens if you have too many investors? In other words, you have more cash than you need. Do you return those funds to your investors or do you keep it for your business? If you're keeping it for your business, isn't it yours to use?

 

 

NO! Of course not! That's called fraud.

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It'd be interesting to know which athletes he supposedly loaned money to. It's actually not a bad business plan, short term loans to pro athletes given they move constantly - buying/selling houses, cars, etc. Problem occurs when you're not being honest with those funding your business.

 

Think about starting any business. You get investors to put up capital to start you out. What happens if you have too many investors? In other words, you have more cash than you need. Do you return those funds to your investors or do you keep it for your business? If you're keeping it for your business, isn't it yours to use?

 

Thing is, when the investors aren't seeing a return on their investments, they begin to ask questions. And when they realize the funds are being used more for personal expenses and less for business expenses - then you're screwed.

 

It's for the business to use, not the directors. They must have funneled money from business to personal accounts. Probably the IRS who detected it first.

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NO! Of course not! That's called fraud.

 

 

 

It's for the business to use, not the directors. They must have funneled money from business to personal accounts. Probably the IRS who detected it first.

 

Know that I'm just playing devil's advocate here...but if it's his sole proprietorship that he started with investors' help...what's to say he couldn't just give himself a raise from the company he controls and runs?

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12 year NFL career, made at least $12 million from the Dolphins alone. All you have to do is sit back and count your money for the rest of your life. Enjoy yourself within a framework of financial prudence. But no. Not enough for Allen, got to risk it all on allegedly defrauding people out of their money. Now probably going to prison. Good for you, man. Hope you're proud of yourself.

When you're around others who fly jets and drive brand new sports cars you want in on the action. All that rap music about them G-5 got people thinking retarded.

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No, because if there are other investors then it isn't a sole proprietorship.

 

Unless by investors you just mean somebody that has loaned Allen money, then yeah..

 

Difference between an investor and somebody that has loaned money? Maybe it's the expectation of a return...in a loan situation, the borrower is required to pay that back (with interest) and the risk is on the borrower whereas in an investor situation, the risk is on the lender and there is no required return?

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I think Treehugger probably hit the reasons for the charges. More than likely he was funnelling funds into personal accounts to avoid taxes or something shady like that. If he was running a legitimate business he could have certainly spent profits how he sees fit, or in a corporation raises/bonuses, so there must have been creative money shuffling.

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