SEC Targets Former NFL Player in Ponzi Scheme Fraud Complaint

Former NFL cornerback Will Allen and Susan Daub, his business associate at Capital Financial Partners, are the target of a federal fraud complaint filed on April 1, 2015, in Boston by the Securities and Exchange Commission, alleging they used investor funds for personal expenses and to fund other business ventures as part of a Ponzi scheme.

Allen and Daub are accused of raising over $31 million from at least 40 investors who were guaranteed an annual return of as high as 18 percent of loans made to professional athletes. The complaint alleges that Capital Financial Partners made only $18 million in loans during a three-year period (July 2012 to February 2015), and that Allen and Daub removed more than $7 million from the loan fund to fund personal expenses and other companies they owned.

According to the SEC complaint, a pool of 24 investors contributed over $4 million in mid-2014 to fund a $5.65 million loan to an NHL player. The complaint alleges that this loan was a sham, and that investors were told all payments on the loan had been made on time and in full when in fact the NHL player filed bankruptcy in October 2014.

In addition, the complaint states that Capital Financial paid almost $20 million to its investors even though the company received only $13.2 million in repaid loans from athletes. The SEC complaint alleges that Allen and Daub used money from some investors to pay others in order to fill the gap.

Allen, 36, was in the NFL from 2001 to 2013, and played for the New York Giants, Miami Dolphins and New England Patriots. He is a founder of three Capital Financial companies named in the SEC complaint. Daub, 54, is co-founder of the three Capital Financial firms named in the complaint.

The SEC seeks to recover invested funds with interest and civil financial penalties. The district court approved an order to freeze the defendants’ assets on the date of the filing.

The Cogdell Law Firm is a full service criminal litigation and appellate law firm. We provide client-focused representation at all stages of the process, whether our clients are seeking to avoid charges, have been charged, or are seeking reversal of a conviction on appeal. When results matter most, contact Dan Cogdell at (713) 426-2244 or info@cogdell-law.com.

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