June 29, 2012
By: John Clark
Jim Donnan, the former head football coach at the University of Georgia, has agreed to pay $7.35 million to a company that claimed in its bankruptcy filing that Donnan helped bilk them out of $40 million through a Ponzi scheme.
Retail liquidation company GLC Limited, which is based in West Virginia, filed for bankruptcy after its Ponzi-like furniture selling scheme collapsed, leaving hundreds of angry investors seeking lost funds.
After the scheme collapsed, Donnan and his wife also filed for Chapter 11 protection, although their case has not yet been resolved, according to a report from the Washington Post.
But GLC Limited’s bankruptcy deal was finalized this week, and it requires that Donnan make a healthy payment of $7.35 million to the company, although the company claims the former football coach owes it closer to $13 million.
In addition to this lump sum, Donnan also agreed to repay 80 percent of the losses incurred by the individual investors whom he lured into the Ponzi scheme. Investors are claiming in Donnan’s bankruptcy case that he owes them upwards of $27 million.
When Donnan filed for bankruptcy, the automatic stay put a temporary halt to most of the legal actions pending against him, which allows him time to sort out a settlement, but does not cancel his legal obligations, especially if he actually committed a crime.
Whether Donnan committed a crime is up for dispute, as he has not been formally charged with any criminal wrongdoing, but has been dogged by claims of corruption.
After working as a football coach and an analyst for ESPN, Donnan was a "major and early investor" in GLC Limited, which had a business model that centered on buying appliances and furniture for resale.
The company promised investors an alarmingly high return of 50 to 75 percent annually, and company officials claim that Donnan recruited new investors for what amounted to a Ponzi scheme.
When the company was unable to keep up with the pace of its promised payouts, it filed for bankruptcy in 2011. Shortly thereafter, Donnan made his own personal appearance in bankruptcy court.
In addition to Donnan’s work as a recruiter, the company also claims that Donnan personally profited from money he invested in GLC Limited, although Donnan disputes this allegation, and also says he played no role in the creation of the scheme.
PAID ATTORNEY ADVERTISEMENT: THIS WEB SITE IS A GROUP ADVERTISEMENT AND THE PARTICIPATING ATTORNEYS ARE INCLUDED BECAUSE THEY PAY AN ADVERTISING FEE. It is not a lawyer referral service or prepaid legal services plan. Total Bankruptcy is not a law firm. Your request for contact will be forwarded to the local lawyer who has paid to advertise in the ZIP code you provide. Total Bankruptcy does not endorse or recommend any lawyer or law firm who participates in the network nor does it analyze a person's legal situation when determining which participating lawyers receive a person's inquiry. It does not make any representation and has not made any judgment as to the qualifications, expertise or credentials of any participating lawyer. No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers. The information contained herein is not legal advice. Any information you submit to Total Bankruptcy does not create an attorney-client relationship and may not be protected by attorney-client privilege. Do not use the form to submit confidential, time-sensitive, or privileged information. All photos are of models and do not depict clients. All case evaluations are performed by participating attorneys. An attorney responsible for the content of this Site is Kevin W. Chern, Esq., licensed in Illinois with offices at 25 East Washington, Suite 400, Chicago, Illinois 60602. To see the attorney in your area who is responsible for this advertisement, please click here, or call 866-200-8052.
FLORIDA ONLY: Total Bankruptcy is considered a lawyer referral service in the state of Florida under the Florida Rules of Professional Conduct. By all other standards, Total Bankruptcy is a group advertisement and not a lawyer referral service.
If you live in Mississippi, Missouri, New York or Wyoming, please click here for additional information.
By an Act of Congress and the President of the United States, we are a federal Debt Relief Agency. Attorneys and/or law firms promoted through this Web site are also federally designated Debt Relief Agencies. They help people file for relief under the U.S. Bankruptcy Code. Disclosures Required Under the U.S. Bankruptcy Code.