The SEC charged Allen with fraud for allegedly operating a $31 million Ponzi Scheme. Allen, with his accomplice Susan Daub, formed a company that made high-interest, short-term loans to athletes. The loans were funded by money from investors, but Allen used the capital for various expenses. More than 40 people invested money in Allen’s Ponzi scheme dating back to 2012,
Prosecutors say former cornerback Will Allen and partner Susan Daub pleaded guilty to federal fraud, conspiracy and money laundering charges in federal court in Boston. Prosecutors say they took in more than $35 million and repaid less than $22 million.
The indictment details that Allen received $4.1 million of the proceeds and that Daub, who was accused of committing 20 felonies, received $239,000. Allen’s indictment includes 12 counts of wire fraud, six counts of aggravated identity theft, one count of conspiracy to commit wire fraud and four counts of illegal monetary transactions. If convicted, Allen faces up to 20 years on each wire fraud charge and shorter sentences for the remaining felonies.