The complaint claims that from July 2012 through February 2015 the duo paid investors ~$20 million but only received ~$13 million in loan repayments from athletes. New investor funds were used to fill the $7 million gap which is why it's been called a Ponzi scheme.
Will D. Allen played college at Syracuse and was drafted in the first round of the 2001 NFL Draft by the New York Giants. Allen also played for the Miami Dolphins and the New England Patriots.
In addition to Allen and Daub, the complaint names Florida-based Capital Financial Partners Enterprises LLC, and Boston-based Capital Financial Partners LLC and Capital Financial Holdings LLC in the suit. The SEC is also seeking to have WJBA Investments LLC, Insurance Depot of America LLC, Simplified Health Solutions LLC, and Simplified Health Solutions 2 LLC included in the suit as "relief" defendants, (read: assets from these entities can be used to help to pay back harmed investors).
According to the complaint one of the largest borrowers is an NHL player that filed bankruptcy in October. According to an article in the PalmBeach Post, that’s Columbus Blue Jackets defenseman Jack Johnson.
A jury trial has been requested.
To be clear, this is not the 32-year-old Will Allen who plays safety for the Pittsburgh Steelers.
To read the full complaint click here.