Ex-NFL cornerback Will Allen accused of running Ponzi scheme

SEC alleges the NFL vet and his partner used cash from clients to fill a $7M shortfall in investor payments
JUN 05, 2015
By  Bloomberg
U.S. regulators sued former New York Giants cornerback Will Allen over claims he helped run a Ponzi scheme that promised investors profits from loans to professional athletes. From July 2012 through February 2015, Mr. Allen and his partner used cash from some clients to fill a $7 million shortfall in payments to other investors, the Securities and Exchange Commission said in a complaint unsealed Monday in Boston federal court. The court froze assets associated with the alleged scheme, and the SEC is seeking additional penalties. (Related: 7 athletes who say their adviser duped them) “The defendants sold investors on the idea of lending money to pro athletes, but we allege that's not where a large portion of the investors' money went,” Paul Levenson, head of the SEC's regional office in Boston, said in a statement. “As in any Ponzi scheme, the appearance of a successful investment was only an illusion sustained by lies.” Mr. Allen, 36, was drafted in the first round by the New York Giants in 2001 and played for the team until 2005 before joining the Miami Dolphins, according to statistics from the National Football League. Mr. Allen graduated from Syracuse University, where he still holds some of the school's defensive records. (See also: NFL star Dwight Freeney sues BofA, adviser for $20 million) Mr. Allen and his partner raised more than $31 million from investors to make the loans to athletes that they said would earn as much as 18% interest, the SEC said. The agency said they misled investors about the terms, circumstances and even the existence of some of the loans and then used some investor funds to pay personal expenses at casinos and nightclubs. A woman working at one of Mr. Allen's companies, Simplified Health Solutions, said he wasn't available to comment.

Latest News

Barred ex-Merrill Lynch advisor arrested in alleged $2.6M theft of former Miami Dolphin Pro Bowler
Barred ex-Merrill Lynch advisor arrested in alleged $2.6M theft of former Miami Dolphin Pro Bowler

Former advisor Isaiah Williams allegedly used the stolen funds from ex-Dolphins defensive safety Reshad Jones for numerous personal expenses, according to police and court records.

RIA moves: Modern Wealth tops $8.5B AUM as Aspen expands in Connecticut
RIA moves: Modern Wealth tops $8.5B AUM as Aspen expands in Connecticut

Modern Wealth's latest deal for a California-based fee-only RIA marks its fourth acquisition of 2025.

Empower defends private market access in 401(k)s in response to Warren scrutiny
Empower defends private market access in 401(k)s in response to Warren scrutiny

Sen. Warren has warned of private market investment risks due to opacity, illiquidity, and past regulatory issues.

AI is gaining traction with buy-side equity traders and may be an unstoppable force
AI is gaining traction with buy-side equity traders and may be an unstoppable force

Use of the technology is growing and asset managers see transformative benefits.

One fifth of Americans are expecting an inheritance but are too many relying on it?
One fifth of Americans are expecting an inheritance but are too many relying on it?

Research reveals expectation could be replaced by disappointment.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.