Documents filed in a Ohio bankruptcy court accuse former University of Georgia coach Jim Donnan of running a Ponzi scheme in which at least $13 million of investor contributions remains unaccounted for. Donnan is alleged to have personally netted over $5 million from the scheme, while nearly 300 fraudulent transfers to family members netted an additional $14.5 million.
Donnan founded GLC Enterprises in March 2004, touting the company as a retail liquidation company and re-seller of consumer products. In obtaining over $80 million in investments from 50 different individuals and entities, Donnan promised commissions of fifteen to twenty percent. Instead, only $12 million of the $82 million from investors was used to purchase inventory. The remaining funds were used to pay commissions to older investors, a classic hallmark of a Ponzi scheme. At least $13 million of investor funds remain unaccounted for.
As a result of Donnan's coaching position at the University of Georgia, several other high-profile football coaches were also named as investors. These coaches include former Dallas Cowboys coach Barry Switzer, Virginia Tech coach Frank Beamer, and Texas Tech coach Tommy Tuberville. Donnan has denied any wrongdoing through his attorney.