Donnan goes from Hall of Fame to ‘real SEC’ Hall of Shame
It turns out life was a lot simpler when Jim Donnan was just a football coach. (Getty Images)
As Georgia football coaches go, Jim Donnan is the only one who collapsed under the weight of the SEC.
Not that SEC — the real one.
The Securities and Exchange Commission has charged Donnan with conducting an $80 million Ponzi scheme with an Ohio partner through a West Virginia company, GLC Limited.
This is even worse than losing to Kentucky in your first season.
Donnan mostly made his mark as a football coach at Marshall, where he won Division 1-AA championships. At Georgia, he was a step up from Ray Goff but not nearly as good as his replacement, Mark Richt. He had an impressive enough career to be inducted into the College Football Hall of Fame in 2009. What happened after that, I don’t know.
Once a coach or an athlete has achieved a certain level in sports and made a fair amount of money, it should not be that difficult to capitalize on your name — legally.
Donnan never coached again after getting fired following the 2000 season. He went into broadcasting. He got a job at ESPN. He did local sportstalk radio. Everything seemed fine. But often that competitive edge, the need for a thrill, that drives coaches and athletes doesn’t leave them post-career. That can become their undoing. It’s the simplest explanation I can think of for what Donnan has been accused of.
If the allegations are true, Donnan did the worst possible thing: He used his name to commit fraud against those who considered him a friend. He duped coaches and former players.
Among the SEC’s claims: “Donnan recruited the majority of investors by approaching contacts he made as a sports commentator and as a coach. For instance, he capitalized on his influence over one former player by telling him, ‘Your Daddy is going to take care of you. … If you weren’t my son, I wouldn’t be doing this for you.’ The player later invested $800,000.”
Imagine if Donnan didn’t consider him a son.
This story first broke last year. GLC Limited filed for bankruptcy in March of 2011. Donnan filed for bankruptcy a few months later. Financial disclosures indicated he owed $8.25 million to GLC Limited, according to a story in the Journal-Constitution. The court filing included 65 pages of creditors from several states.
In July of 2011, our Tim Tucker quoted Donnan’s attorney, Edward Tolley, as saying: “If this was a phony scheme, a lot of people were fooled, including, I submit to you, Jim Donnan.”
That defense apparently did not sway the SEC.
According to a news release on the charges, Donnan and his partner, Gregory Crabtree, ran a wholesale liquidation business that earned “substantial profits by buying leftover merchandise from major retailers and reselling those discontinued, damaged, or returned products to discount retailers. They promised investors exorbitant rates of return ranging from 50 to 380 percent. However, only about $12 million of the $80 million raised from nearly 100 investors was actually used to purchase leftover merchandise, and the remaining funds were used to pay fake returns to earlier investors or stolen for other uses.”
So much for the simple and stress-free life of a football coach. Maybe Donnan should’ve just followed Goff into the chicken business.
By Jeff Schultz
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209 comments Add your comment
Rusty
August 16th, 2012
1:56 pm
I love how everyone is automatically guilty in today’s society, its pathetic. Let the man have his day in court before you go throwing stones at him.
I’d be willing to be he’s not guilty, wouldn’t be the first time someone was falsely accused of something, geez people.
Rusty
August 16th, 2012
1:57 pm
He is clearly not guilty people. This makes no sense why he would’ve done this.
Bunch of judemental a holes…..
Promethius
August 16th, 2012
1:57 pm
Why has no one picked up on fact that Frank Beamer, who has defended Donnan throughout all of this, was the only investor to make money from his investment in this scheme. Somebody shout out on this. Beamer looks shady here.
DIT
August 16th, 2012
2:01 pm
“This is even worse than losing to Kentucky in your first season.”
______________
Might I add So. Miss. to that as well
Not that SEC | Get The Picture
August 16th, 2012
2:07 pm
[...] Pennington asks exactly the same question that popped into my mind when I learned that Jim Donnan had been charged: All of this took place since Donnan’s dismissal from Georgia, but — but — what if it [...]
@C from Marietta
August 16th, 2012
2:08 pm
Logic is in short supply on these boards. Either some posters are critcally thinking-challenged, or they are letting their jealousy of UGA overrule any common sense they may possess.
Common
August 16th, 2012
2:09 pm
They should hire him back. He could really relate to the personalities they recruit nowadays.
Silby
August 16th, 2012
2:13 pm
Donnan was “promising” all these chump investors returns from 50% to 380% and they believed it??? There are some real suckers out there, willing to pay for some “easy” money. I need to get me some of this cash.
7576DAWG
August 16th, 2012
2:15 pm
In a Ponzi scheme if the defendant is found guilty the court will confiscate all money involved and that means anybody who was paid and made a profit will have to reimburse what they collected. Then the total money collected will be divided equally among the victims. So I hope Beamer hasn’t spent the money yet because depending on when he got his investment back and profits and when it was determined the business turned into a Ponzi scheme he could lose some of what he got back.
7576DAWG
August 16th, 2012
2:15 pm
In a Ponzi scheme if the defendant is found guilty the court will confiscate all money involved and that means anybody who was paid and made a profit will have to reimburse what they collected. Then the total money collected will be divided equally among the victims. So I hope Beamer hasn’t spent the money yet because depending on when he got his investment back and profits and when it was determined the business turned into a Ponzi scheme he could lose some of what he got back.
7576DAWG
August 16th, 2012
2:16 pm
sorry for the double click.
GTBob
August 16th, 2012
2:16 pm
Hey GTBob, have you noticed that the longer Paul Johnson is at GT, the better Chan Gailey looks?
Huh? Gailey was an awful coach. How is he looking any better? You do realize that even last years poor CPJ team did better then almost every Chan team, right?
fayncdawg
August 16th, 2012
2:17 pm
Donnan might get a prison sentence.But in order for him to receive a long prison sentence (10 years or more), the government may have to prove that Donnan has a significant amount of money on hand, be it in a bank account or invested. Bankruptcy proceedings should determine if Donnan has this money on hand (or is living such an extravagant lifestyle to suggest he had money somewhere). If Donnan is truly broke and destitute, MIGHT get some time. Now if he has money on top of money and/or some extravagant lifestyle, then Donnan will die in prison!
Danny Ford
August 16th, 2012
2:18 pm
Cheating ………a UGA tradition!
Rusty
August 16th, 2012
2:23 pm
And also, as it currently stands this is a Civil case….. No jail time for that.
GTBob
August 16th, 2012
2:28 pm
Man, where ya been, GT Bob. It’s been dang near two hours. You slowin’ down in your old age?
Nah, its just a busy day for me. Sorry to keep you guys waiting.
GTBob
August 16th, 2012
2:31 pm
I love how everyone is automatically guilty in today’s society, its pathetic. Let the man have his day in court before you go throwing stones at him.
Honestly, how many UGA people that are accused of crimes end up being found not guilty? He should just work on a plea deal.
Promethius
August 16th, 2012
2:32 pm
Again, Beamer defended Donnan, and was the only to make money. Anybody getting it yet?
Bernie Madoff
August 16th, 2012
2:34 pm
Rusty, how come I got jail time?
TheSabanFactor
August 16th, 2012
2:34 pm
Well now we have our Designated Coach for the ALL Thuga Felon Team: Jim Donnan
and OUR AD; Damon “Red Panties” Evans(DUI)
Lets list the all star lineup we have:
QB: Quincy Carter(Crack, multiple drug offenses, assault, see google before I run out of characters)
RB:Isiah Crowell (Guns, Drugs)
RB:Caleb King (Felony Assault)
WR: Hines Ward (DUI) (Voted Dirtiest player in NFL by peers)
WR:Tavarres King- DUI
OL: George Foster – Committed a $ex Crime on a Florida Player costing us UF Game & SEC title
OL- Clint Boling- DUI
OL- Cant remember dudes name: He stole someones car tag sticker and placed on his vehicle
OL-Trinton Sturdivant – Battery
OL-Justin Anderson – Battery
TE -Clarence Kay (Assault, Drugs)
Defense:
DT: Brandon Wood(Dui)
DT; Kiante Tripp ( Burglary)
DE: Montez Robinson(Multiple Assault Arrests)
LB: Odell Thurman(Drugs, Assault, Longest banned player in NFL history)/CMR Posterboy
LB- Rennie Curran – Assault
LB- Alec Ogletree- Theft, (Being the Cam Newton of the Bicycle World)Drugs
LB- Marcus Dowtin- Assault, Drugs
DB- Sanders Cummings: Assault
DB-Tim Wansley – DUI, Assault
DB- Nick Robinson- Theft
DB- Branden Smith- Drugs
Long Snapper; Jeff Henson (Public urination, indecent exposure)
Summation of EX Thuga players is they like to hit the bottles, the powdered lines, their ladies, and much smaller non athletes harder than they ever did on the gridiron. You know a team is stacked when I had to leave off Zach Mettenberger, Orson Charles, Washaun Ealey, Knowshawn Moreno,Brownie Boy Rambo, and hundreds of others. Darius Dewberry even vandalized a hospital
Permanent Team Captains ; Quincy Carter (Offense) & Odell Thurman ( Defense)
Bottom Line is while Coach Mark Richt is praised for his religious beliefs and bible work, he is constantly handing out Bibles ( That are carved out to include slots for drugs,flasks, and get out of jail free cards(like to the DL who spent 30 days in jail and was arrested 4 times for same offense yet never missed a snap. His favorite chapters come from his Miami and FSU days.
While Saban’s players do not get arrested, make all american and win National Championships.
The only thing UGA wins is Fulmer Cups!
Rusty
August 16th, 2012
2:36 pm
Well Bernie, I think because criminal charges got filed against you as well. Criminal charges may be forthcoming against Donnan but haven’t been filed yet.
what da ya got?
August 16th, 2012
2:46 pm
I don’t give a damn about ” leg cramps ” !
I remember when Donnan cussed out Ole’ Lorain Smith
during a live post game radio interview about the Dawgs
having ” leg cramps “.
Dawglasville
August 16th, 2012
2:53 pm
TheSabanFactor – Wow. You sure put a lot of time into that. Bama Football is more special than UGA. Second only to Notre Dame (since you guys love history so much). Please tell me about all of the other things that are special about your school and your state. All I can say is at least your not Mississippi.
Dawglasville
August 16th, 2012
2:55 pm
“you’re” not. I know.
the$abanfactor
August 16th, 2012
2:56 pm
27 NCAA rules violations pushed under the crimson rug
within the last twelve months.
the$abanfactor
August 16th, 2012
2:57 pm
….. take that statue down.
TheSabanFactor
August 16th, 2012
3:06 pm
I will see the Thuga Nation in the dome wearing their Music City Bowl Runnerup shirts & Capitalone Bowl Runner up hats!
TheSabanFactor
August 16th, 2012
3:12 pm
Notice CNNSI ran an article about how College Football is being Sabanized, well with the dismissals of so many top football players look for an article about an athlete who doesnt pan out due to discipline or perfomance issues to be entitled “Richtized”
Buckeye
August 16th, 2012
3:20 pm
Damn fine dog
Big Crimson 75
August 16th, 2012
3:21 pm
Donnan had a terrible Mentor to learn from — Barry Switzer.
typical d/a dawgfan
August 16th, 2012
3:26 pm
outstanding post sabanfactor…all uga fans should embrace the “real dream team”..hahahahahaha!!!!!!!!!!!!
Big Crimson 75
August 16th, 2012
3:28 pm
Dawglasville — I’d argue about ND being the most storied Program in history. IMHO, you can’t have the kind of mediocrity for 32 years like ND has & stay on top.
I’m not saying Bama is the most storied Program, but ND no longer gets that distinction.
TheSabanFactor
August 16th, 2012
3:28 pm
Typical d/a dawgfan… thanks for putting the cherry on top:-) I should have thought of naming it that!
RC--apoi
August 16th, 2012
3:28 pm
Well, first the guy takes UGA to the cleaners and skips town with cash. Now he takes a whole bunch of coaches and players to the cleaners and skips town with cash. I sure hope he don’t take the SEC to the cleaners. We’re $16 trillion in debt already and can’t afford it.
Silby
August 16th, 2012
3:29 pm
Which coach was worse?
Chan Gailey
Jim Donnan
Ray Goff
Bill Lewis
TheSabanFactor
August 16th, 2012
3:30 pm
What Notre Dame gets is special treatment that should be discontinued. BCS money , BCS Voting memberships, TV contracts. They bring nothing to the table in this day and age. The only thing that keeps Bama from being the National Brand, is morons like Harvey Updyke and Brian Downing.
Once we crack down on those jokers watch out.
BamaRTR
August 16th, 2012
3:31 pm
crooked coaches, players getting arrested all the time… georgia’s program is out of control. They need to call the AD at Alabama about running a clean program with top coaches and winning titles. If not, more of the same! RTR!
Big Ten Champs Nebraska
August 16th, 2012
3:34 pm
This doesn’t happen at Nebraska
Big Crimson 75
August 16th, 2012
3:35 pm
Factor — I wouldn’t have Hines Ward on that list.
Ward played the game the right way.
If memory serves, didn’t uga have a white dude playing receiver when Q Carter was there??…Michael Greer?, and wasn’t he “involved” with Q Carters drug ring??
Speaking of Carter — honest question dog fans, wth happened his last year in Athens?? His stats were terrible.
TheSabanFactor
August 16th, 2012
3:36 pm
Honestly ask yourself UGA fans, how many of you can honestly Say Odell Thurman would have run over Nick Saban the way he did Mark Richt? Or QUincy Carter ran over Jim Donnan? Or Garrison Hearst running over Ray Goff?
TheSabanFactor
August 16th, 2012
3:37 pm
The inmates have always run the asylum in Athens and its been that way since Vince Dooley Retired, as he was the only coach who was really respected by his players.
TheSabanFactor
August 16th, 2012
3:38 pm
Big Crimson75- Ward is on the list because of his DUI arrest. I always thought he was dirty, although I laughed when he ended that Barner Jimmy Brumbaughs career.
Alphare
August 16th, 2012
3:39 pm
UGA fans, you cannot say UGA shouldn’t get any credit for the scheme, can you? think about Dooley if you don’t agree.
Alphare
August 16th, 2012
3:43 pm
TheSabanFactor,
that’s a DGD list that UGA can build on for their football legacy. LOL.
Big Crimson 75
August 16th, 2012
3:48 pm
Huh? Gailey was an awful coach. How is he looking any better? You do realize that even last years poor CPJ team did better then almost every Chan team, right?
——————–
Bob, you’re hittin’ the Sauce early today!!
Gailey’s crutch @ GT was Reggie “don’t throw the” Ball.
Unfortunately Bobby, when your QB can’t make a 20 yard toss down-field, no Coach is gonna look good.
Chan’s doing a pretty decent job holding his own with the Bills, in a division with Belechik & Rex Ryan.
At least Chan could recruit 1 or 2 pro prospects a year.
The problem you & the 25 other GT fans had/have with Chan is he did it with a Southern Accent!!! That’s forbade on the Flats.
Big Crimson 75
August 16th, 2012
3:52 pm
Factor — I forgot about the Brumbaugh hit!!
Bammer
August 16th, 2012
3:55 pm
TheSabanFactor with the AJC Post of the Decade!!!!!!!!!! Too good!!!!!!!!
UGADawg83
August 16th, 2012
4:00 pm
This is not a UGA story; this is a story about a FORMER employee of UGA. That said, I still maintain that the worst thing Donnan ever did was lose three in a row to Tech. In fact, those wins over Georgia were about the only factual thing on George O’Leary’s resume.
LakeDawg
August 16th, 2012
4:04 pm
Ray Gump-hands down worst
Big Crimson 75
August 16th, 2012
4:06 pm
Lake — Is it Ray Gump or Forrest Goff!!