Susan C. Daub and William D. Allen have each been sentenced to six years in prison for running a Ponzi scam that involved issuing loans to professional athletes. Allen, a former NFL player with the Miami Dolphins and the New England Patriots, and Daub have been both the subject of a criminal case and an Securities and Exchange Commission case over this matter.
The two of them were arrested in 2015 on criminal charges of wire fraud, conspiracy, and charging money related to a specified illegal act. Along with their Capital Financial Partners Enterprises, Capital Financial Holdings, and Capital Financial Partners, the two of them raised nearly $32M from investors, who were told that they were providing loans professional athletes but would get back their money in full along with interest when the loans were repaid.
In its civil case, SEC said that Daub and Allen only advanced about $18M to the athletes even though they’d raised over $31M from investors. The regulator said that from 7/2012 through 2/2015, even though the defendants had only gotten back a little over $13M in loan repayments from the pro athletes, they paid back about $20M to investors by using investors’ funds to make up for the almost $7M deficit.
Also, claim prosecutors, Allen and Dab used most of investors’ money for their own expenses or for their other businesses. Meantime, new investors’ funds were used to pay earlier investors.
Last year, Allen and Daub pleaded guilty to one count of money laundering, one count of conspiracy, and two counts of wire fraud. They also must pay investors whom they harmed $16.8M in restitution.
Filing a Securities Fraud Case
Even if a civil and/or criminal case has been brought against the party or parties that you believe defrauded you, it is important that you retain an experienced investment fraud lawyer to help try to obtain the maximum recovery possible.
At Shepherd Smith Edwards and Kantas, LTD LLP, we have helped thousands of investors get the investments back. Contact our investor fraud law firm today.
Read the SEC’s Complaint (PDF)