MIAMI (CBSMiami) — The Securities and Exchange Commission (SEC) charged a former Miami Dolphins’ player with helping orchestrate a $32 million scheme that targeted both athletes and investors.
Will Allen, 36, played 11 seasons in the National Football League (NFL) under teams like the Miami Dolphins, New York Giants, and the New England Patriots. He retired in 2012. Around that same time, the SEC said he started up a number of businesses with a financial adviser.
The main focus of the business was to make short-term loans to athletes. They targeted athletes who needed money during the off season. The athletes would pay between 9 and 18 percent a month. The loans would last from a few months to a few years, according to legal documents.
Allen and his partner Susan Daub, 54, were apparently very good at raising money.
Allen made millions in the NFL and according to the SEC, the two raised nearly $32 million from investors; however, they only lent about half of the money which was $18 million.
When investigators took a closer look they found Allen and Daub were paying investors back with the investors’ money, not repayments from the loans, making it a classic Ponzi scheme.
The SEC said bank records show the two used $7 million from investors for personal and other business expenses. This included spending on hotels, flights, casinos, even pawn shops.
Allen who lives in Davie and Daub who lives in Coral Springs couldn’t be reached for comment.