A recent criminal complaint charged former Patriots player Will Allen and former Regions Bank executive Susan Daub with securities fraud for their role in an alleged Ponzi scheme involving professional athletes. After their arrest on June 12, Allen and Daub faced a magistrate judge in the U.S. District Court in Fort Lauderdale for their initial appearance.
The complaint alleges that Allen and Daub were partners in a company called Capital Financial Partners or “CFP.” This Massachusetts-based company claimed to provide private lending services to unique individuals, and specialized in short-term loans to professional athletes.
According to allegations, Allen and Daub told investors that their money would go toward loans for athletes, and that they would receive full repayment with interest on a payment schedule. Although Allen and Daub did provide some loans to pro-athletes through CFP, millions of investor dollars were diverted for their own personal use and other improper activity.
The complaint also accuses Allen and Daub of covering up their scheme by paying existing investors with newer investors’ money in typical Ponzi scheme fashion. They also allegedly misrepresented loan amounts to get more money, asking more of the investors than they were actually lending to the athletes. In some cases, says the complaint, Allen and Daub took investor money for loans they never issued.
The two could face up to 20 years in prison, five years of supervised release, and $5 million in fines if convicted.