Jim Donnan, ex-ESPN analyst and former football coach at University of Georgia, has reached a settlement agreement in his ongoing bankruptcy case. The settlement has him returning millions of dollars he made from an alleged Ponzi scheme, according to court reports.
Under the terms of the settlement, Donnan would pay $5.5 million to the creditors of West Virginia-based GLC Enterprises. A source familiar with the settlement told the press, “At the end of the day, his (Donnan’s) net worth is going to be pretty close to nothing.”
Doonan’s attorneys said that their client was the first investor in GLC, a liquidation company that generated revenue through the purchase and resale of consumer products. He’s acknowledged investing $5.4 million of his own money in the company, which is also now in bankruptcy proceedings.
Sources told the press that Donnan and the original operators of GLC, Greg and Linda Crabtree, are being investigated by the FBI and IRS for their roles in running an apparent Ponzi scheme.
Court documents show investors sank about $82 million into GLC, but less than $12 million was spent on actual inventory.
The court has not accepted the agreement offer as of yet. The agreement requires approval from the bankruptcy court, and any creditors in GLC’s bankruptcy case are entitled to raise objections.
Bankruptcy is a valid legal option, no matter who you are, or what your social status is. As long as you qualify through the means tests, you can enter and work towards receiving a discharge. Bankruptcy offers the ability to get your financial life back on track with little disruption to your life.
Benjamin Brand Services – Chicago bankruptcy lawyer