The Department of Justice has charged former NFL player Will Allen and his business partner, Susan Daub, with running a Ponzi scheme involving bogus loans to professional athletes.
Allen and Daub are the principals behind Florida-based Capital Financial Partners Enterprises LLC. According to the allegations made by the Securities & Exchange Commission (SEC), Allen and Daub loaned out approximately $18 million out of the $32 million received from investors by overstating or falsifying loans to various professional athletes. As a result, both principals have been charged with one count of securities fraud.
Capital Financial Partners pitched investors by telling them that their fund stepped in when professional athletes needed access to large sums of money during the off-season to make payments on their houses, cars and other expenses. The DOJ filing claimed that CFP overstated the value of their loans in order to pocket the difference for personal expenses.
CFP and its principals are also the subject of a civil action by the SEC. The SEC action accuses Allen and Daub of violations against the Securities Exchange Act and is seeking to obtain a preliminary injunction and civil penalties to halt their business. This action also requires them to submit an account of their assets, including investor funds.
The attorneys at Dimond Kaplan & Rothstein, P.A. represent investment fraud victims in FINRA arbitration and state and federal court. If you have been the victim of securities fraud, you may have certain legal rights that require your immediate attention. Contact us to schedule an appointment or consultation today.