Just call him the Bernie Madoff of the NFL. Will Allen, who played cornerback for the Giants, Dolphins, and Patriots between 2001 and 2012, is being charged by the Securities and Exchange Commission for his involvement in a $32 million Ponzi scheme. Basically, Allen is being accused of running a fraudulent investment business in which he tricked his clients into investing money that was to be used as loans to pro athletes. In return, Allen promised them that they would make a large profit off of the interest on the loans. While some of the money was actually being loaned to athletes, a large portion of it was being used by Allen for his own personal expenses, like going to clubs and casinos. On top of that, he was paying the investors back using money contributed by other investors rather than profit from the loan interest. This went on from 2012 to 2015. During that time, approximately $31.7 million was raised by investors but only a little over half that amount was being used for its true business purpose.
The SEC has filed civil fraud charges against Allen and his business partner Susan Daub. All of their assets have been frozen and they will be required to pay back all the money that they took from their investors.
Allen’s NFL career ended in July of 2012, which is right around the time he started running this operation. If I had to guess, I’d say that he was trying to maintain the same lifestyle without the same means. Let this be a lesson to other athletes on the importance of saving money while it’s still there. Cause otherwise, as you can see from what this ex-NFL player is going through, life after football can be rough.
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