A former professional football player and his partner have been sentenced to six years in prison and ordered to pay $16.8 million in restitution each for defrauding other professional athletes, the Securities and Exchange Commission announced Friday.
William D. Allen, who played for the New York Giants, Miami Dolphins and New England Patriots, and his business partner, Susan C. Daub, were sentenced in federal court in Boston on March 1. The professional athlete investors recruited by the two were supposed to profit from loans made to other athletes. In reality, investors were paid by new investor funds in a Ponzi scheme, the SEC says.
Allen of Davie, Fla., and Daub of Coral Springs, Fla., were arrested in June 2015 on criminal charges of conspiracy, wire fraud, and charging a money transaction in connection with specified unlawful activity. They pled guilty to the criminal charges in November 2016.
The SEC also filed civil charges against the pair and three corporate entities they owned or controlled, Florida-based Capital Financial Partners Enterprises LLC, and Boston-based Capital Financial Partners LLC and Capital Financial Holdings LLC. The SEC charged all five with operating a Ponzi scheme that raised almost $32 million.
The SEC complaint is pending.