The West Virginia-based liquidation company, GLC Limited, would buy appliances and furniture for resale, promising high rates of return that didn't materialize, federal regulators said. The pair raised about $80 million from nearly 100 investors, but only about $12 million of that was used to buy merchandise for liquidation while the remainder was used to pay false returns to earlier investors or was spent by Donnan and partner Gregory Crabtree, of Proctorville, Ohio, the SEC said.
Donnan also funneled large sums to two of his adult children and a son-in-law, and regulators are seeking to recover at least some of that money, the SEC said.
Donnan was head football coach at Marshall University from 1990 through 1995 and at the University of Georgia from 1996 through 2000 and later became an ESPN analyst.
Among the coaches Donnan helped attract were Texas State football coach Dennis Franchione; Virginia Tech football coach Frank Beamer; ex-Dallas Cowboys coach Barry Switzer and Texas Tech football coach Tommy Tuberville...
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