Monday, July 18, 2011

Jim Donnan...A Ponzi Scheme Artist?

The West Virginia based company, GLC Limited, after recently filing for bankruptcy, has been accused of defrauded large sums of money -- almost $28 million -- from investors. Guess who is someone accused of soliciting that money -- you guessed it, Mr. James Donnan. Apparently, Donnan and his wife Nancy, are accused of receiving 15-20% commission for any investments solicited and transferring many of the returns to their children (which included a home).

Now, these are merely accusations, so we mustn't rush to judgment on this one. Here is what his attorney said:

"The suggestion that Jim Donnan was aware of a Ponzi scheme is totally false..."

Donnan apparently recruited several other Division I coaches including Tommy Tuberville and Frank Beamer. Here is what Beamer had to say about Donnan:

"I just refuse to believe that Jim knew what it was when it started," Beamer said. "Knowing Jim over the years I don't think he'd get his friends into something like that."

Donnan and his wife Nancy recently filed for Chapter 11 bankruptcy themselves. Donnan offered to pay back creditors $5 million, which Donnan's attorney said it "about all he has".

The question here is not whether GLC Ltd. performed a Ponzi scheme -- they definitely did. The question is whether or not Donnan knew about it.

1 comment:

  1. Wonder if Quincy was an investor?