Monday, August 8, 2011

Donnan's Water Getting A LOT Hotter...

Check this from Brooks over at Sports By Brooks (Make sure and read the ARTICLE as well. It doesn't look good):

In a civil action filed in a federal bankruptcy court last month in Athens, Georgia, GLC alleged Donnan had committed fiduciary fraud, embezzlement and larceny in the company’s bid to obtain the $5 million remaining in Donnan’s personal estate. (Donnan filed for bankruptcy himelf after GLC declared Chapter 11.)

GLC alleges that Donnan, who was a major investor in the retail outlet liquidation company, used his formal role with the company to lure investors into loaning money to GLC at exorbitant interest rates. (Some documented agreements touted a 70 percent annual rate of return.) When GLC was unable to service its obligations to the Donnan investors who had loaned it money - and Donnan himself was unable to obtain fresh investment capital to help GLC service those loans - the company was forced into declaring bankruptcy.

In federal court documents the company reported that from 2007 to 2010 Donnan helped secure $81,916,000 from investors. During the same period, GLC alleges that Donnan billed the company $14,557,228.50 in his own personal loan interest and commissions - with much of that money transferred from Donnan to his immediate family members and wife.



Of the over $81M in investment funds, GLC reported in court documents that $11,793,000 was invested in company operations.

That's just the tip of the iceberg. I thought this just might be a passing thing and Donnan wouldn't be a major player in this scandal. Considering the mountain of evidence Brooks has mounded up, it's not looking good for Jim. 

Sheesh, this looks REALLY bad.


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