A former NBA player who is now chief executive officer of a New Jersey real estate development firm has been indicted on federal charges he ran a more than $2 million Ponzi scheme, the U.S. Department of Justice said.
C. Tate George, 43, who played for the New Jersey Nets and Milwaukee Bucks in a career spanning 1990 to 1997, was indicted on four counts of wire fraud in federal District Court in Newark, N.J. today, according to a release issued by New Jersey U.S. Attorney General Paul Fishman.
George falsely claimed that his firm, The George Group, had more than $500 million in assets, according to the indictment. His investors, including several former professional athletes, put up more than $2 million that George's firm falsely claimed was to be used for purchasing and developing projects in Florida, Illinois, Connecticut and New Jersey, court papers said.
George persuaded people, including former professional athletes, to invest in what he promised would be high-return real estate projects, the indictment said.
But instead of financing real estate development projects, George used the money to pay other investors as well as for improvements to his home, meals, clothing and gas, the indictment said. His firm "had virtually no income-generating operations," the indictment said.
George faces a maximum potential penalty of 20 years in prison and a $250,000 fine for each count.
-Jim McConville