Ex-UGA coach settles dispute over investments
Wednesday, August 10, 2011
ATLANTA (AP) -- A former University of Georgia head football coach has reached a settlement with a company that accused him of recruiting fellow college coaches to invest in a Ponzi scheme.
In court filings, a West Virginia-based liquidation company called GLC Ltd. claims Jim Donnan invested more than $5.4 million in the firm and that he and his family ultimately made more than $14.5 million.
Donnan has not been charged with anything and his attorney says he was absolutely not involved in a Ponzi scheme.
The company claims Donnan, who coached at UGA from 1996 to 2000, solicited investors and received a commission of up to 20 percent for each investment. GLC said it had to secure even more investments to repay the growing number of investors before the scheme collapsed in March.