Ex-NBA Basketball Player Charged in $2 Million Ponzi Scheme
- Posted on September 23, 2011 at 4:44pm by
Becket Adams
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This Aug. 12, 2006, file photo shows former Connecticut basketball player Tate George entering the Mohegan Sun Arena in Uncasville, Conn., to play in the Jim Calhoun Charity All-Star Basketball Game. George surrendered Friday, Sept. 23, 2011, to face charges stemming from what federal prosecutors say was a Ponzi scheme. Prosecutors say George used The George Group to run the more than $2 million investment fraud scam. Photo: AP/AP
Tate George, a former basketball player for the Milwaukee Bucks and the New Jersey Nets, has turned himself in to the FBI on charges of defrauding investors of $2 million in a ponzi scheme, according to the Hartford Courant.
Between 2005 and 2011, Tate George, who is best known for having played for UCONN between 1986 and 1990, secured $2 million that he said was going toward real estate investments.
Instead, he deposited some of the money in his personal bank account, and used the rest to repay more senior investors, reports Business Insider.
George’s attorney, Thomas Ashley, says that his client is innocent of the charges and they plan to plead not guilty.
The Associated Press reports:
Prosecutors claim that between 2005 and March 2011, George persuaded people — including former professional athletes — to invest in what he promised would be high-return real estate development projects in Florida, Illinois, Connecticut and New Jersey. He claimed to be managing a real estate portfolio of more than $500 million in assets as CEO of The George Group and personally guaranteed people returns on their investments, plus interest, according to prosecutors.
George instead used some of the new investor money to make principal and interest payments to existing investors, New Jersey U.S. Attorney Paul Fishman said. He also used the money for improvements on his home and personal expenses including gas, restaurant meals and clothing, Fishman said.
Bail was set at $250,000, secured by a property bond signed by George’s mother, who was in court with other family members.
He could face up to 20 years in prison if convicted.
(The Associated Press contributed to this story.)
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Any_One_But_Obama
Posted on September 24, 2011 at 4:49amDid you ever watch Steven Crowder call up the SEC and ask what a Ponzi Scheme was… He did it in an interesting way, he described social security… hilarious…: http://www.americanparchment.com/video/2011/sep/ss_ponzi_sec.html
Report Post »Gypsy123
Posted on September 24, 2011 at 2:58amI love the bumper stickers that say Stop Stealing the Government hates competition.
Report Post »georgeisn6
Posted on September 23, 2011 at 10:54pmWhat ponzi scheme? was he in to the socail secruity scam? a ponzi scheme cant be aginst the law Franklin delleno Rosiefelt did it to the whole country and no one arested him;
Report Post »shorthanded12
Posted on September 23, 2011 at 9:08pmThats it 2 million scheme. Hell The Federal Government Scams the tax payers billions everyday. Maybe he needs to hook up with Tax Cheat Geithner, Rangle and Waters on how to avoid jail time. Or a call to Eric “The Coward” at the DOJ for pass on this one.
Report Post »TomFerrari
Posted on September 23, 2011 at 9:23pmHear, HEAR !
Report Post »Constructionist
Posted on September 23, 2011 at 9:01pmHe’ll be fine… Most of the GOP nominees have argued for weeks that this type of investment model is NOT a Ponzi scheme.
Report Post »TomFerrari
Posted on September 23, 2011 at 9:23pmGOOD One!!
Report Post »dap94
Posted on September 23, 2011 at 8:58pmAnyone dumb enough to invest money with a NBA basketball player needs to be taken. These guys are not known for their financial prowness!
Report Post »patbarker
Posted on September 23, 2011 at 8:55pmwell, he did play at U Con…errrr, Conn
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