Friday, January 27, 2012

More and more, Jim Donnan looks like garbage

The Ponzi case against former UGA Coach Jim Donnan just keeps getting uglier. From The Banner-Herald:
The Donnans were among the first investors, putting about $5.4 million in GLC, then getting $14.6 million back, according to documents filed by Bell’s lawyers.

Donnan got a commission of 15 percent to 20 percent when he solicited other investors to invest in or loan money to GLC, according to court documents filed by lawyers for Bell and for GLC.

The Donnans themselves filed for bankruptcy protection in July, proposing a plan in which the Donnans would repay some of the money they received from GLC. But some of those who lost money have objected, including the widow of Athens physician Stephen Fennell.

Lawyers for Valerie Fennell say Donnan persuaded her husband to invest $450,000 in GLC to buy inventory at a time when Fennell was dying of leukemia and unable to make sound financial decisions, the lawyers said. He only got a fraction of his money back.
So, either you were cheating people out of their money and knew it, or you thought the discount furniture business enabled you to turn a 170 percent profit over the course of a few years. Either way, you gotta go down.

More background on the case here, from ESPN. There are more details of Donnan's bankruptcy case here, also from ESPN, including a link to legal documents.

The second link confirms the profit estimate for the Donnan's:
"There is no dispute that the Donnans [including their immediate family members] were the largest net winners of all investors in GLC as they received from GLC approximately $9,157,000 more than they invested," the settlement agreement states.

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