Former Patriots Player and Former Bank Executive Charged with Securities Fraud
BOSTON—A former New England Patriots player and a former Regions Bank executive were arrested this morning on securities fraud charges in connection with an alleged Ponzi scheme involving fraudulent loans to professional athletes.
Will Allen, 36, of Davie, Fla., and Susan Daub, 55, of Coral Springs, Fla., were charged in a criminal complaint with one count of securities fraud. Allen played for the New York Giants from 2001 to 2005, the Miami Dolphins from 2006 to 2011, and the New England Patriots in 2012. Daub was previously employed as a vice president and private banker by Regions Bank in Florida. Allen and Daub were arrested this morning and had their initial appearances today before a magistrate judge in U.S. District Court in Fort Lauderdale, Fla.
As alleged in the complaint, Allen and Daub were partners in Capital Financial Partners (CFP), a Massachusetts company whose website advertised “private lending to unique individuals.” According to the website, CFP “specialize[d] in issuing short-term loans to professional athletes.” To fund the loans, Allen and Daub allegedly solicited money from investors, telling them that their money would be loaned to the athletes, and that they would be repaid with interest according to a predefined schedule.
While CFP did make some loans to athletes, the complaint alleges that Allen and Daub diverted millions of investor dollars to themselves and other business ventures. To keep investors from discovering their fraud, Allen and Daub allegedly used newly invested money to make payments to existing investors, which they falsely characterized as interest and principal payments from the loan recipients. To generate additional money, Allen and Daub allegedly oversubscribed loans, falsely telling investors that the loans were larger than they actually were and collecting more money from investors than they were actually lending to athletes. In other instances, Allen and Daub allegedly collected money for loans that CFP never made at all.
The charging statute provides for a sentence of no greater than 20 years in prison, five years of supervised release and a fine of $5 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The U.S. Attorney’s Office received valuable assistance from the Securities and Exchange Commission, which previously charged Allen and Daub in a civil complaint. The criminal case is being prosecuted by Assistant U.S. Attorney Brian A. Pérez-Daple of Ortiz’s Economic Crimes Unit.
The details contained in the complaint are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.