While browsing the web, I came upon an article dealing with the bankruptcy case of ex-UGA football coach Jim Donnan that I found pretty interesting. Below is the article:
ATHENS, Ga. — Former University of Georgia football coach Jim Donnan has agreed to a proposed bankruptcy settlement with a West Virginia company and investors who say the ex-coach owes them $40 million lost in a Ponzi scheme, according to documents filed in federal court.
The deal would require Donnan to repay $7.35 million to retail liquidation company GLC Limited, which says it’s owed more than $13 million by the ex-coach. Donnan would also agree to repay 80 percent of the losses of investors he recruited for GLC. Investors had filed claims saying Donnan owned them about $27 million.
A federal judge in Ohio, where GLC is being restructured in bankruptcy court, signed off on the settlement Wednesday. The agreement still needs approval of a judge in Georgia, where Donnan and his wife filed for Chapter 11 protection last July. A hearing was scheduled for July 19 in Athens.
Donnan served as UGA’s football coach from 1996 to 2000 and is also an ex-ESPN analyst. He was a major and early investor in GLC Limited, which would buy appliances and furniture for resale and promised investors payouts of 50 to 70 percent interest annually. The company says Donnan not only profited from money he put into GLC, but also charged commissions of up to 20 percent for recruiting fellow college coaches and others to invest money in the firm.
Unable to keep pace with the promised payouts, GLC filed for bankruptcy protection in 2011, and Donnan soon did likewise.
In court filings, GLC’s owners accused Donnan of playing an active role in the creation and maintenance of the Ponzi scheme that drove the company into bankruptcy. Donnan has insisted he was not a part of any scheme. He has not been charged with any criminal wrongdoing.
Source: Washington Post
I just thought this was a cool, relevant story dealing with bankruptcy in the national media. As always, if you have any questions and are considering filing Chapter 7 or Chapter 13 bankruptcy in Maryland, and are looking for a lawyer to help, call or e-mail us today.
David L. Ruben, Esquire
Owner, Maryland Bankruptcy Center