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

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.