Jim Donnan, former University of Georgia football coach, stood before a judge in a federal courtroom Tuesday in Macon after being indicted for operating a Ponzi scheme from 2008 to 2010.
Donnan and his business partner, Greg Crabtree, were charged with 85 counts of fraud, according to the U.S. Attorney for the Middle District of Georgia.
Donnan and Crabtree were the managers of GLC Limited, a supposed wholesale liquidation business based in West Virginia that earned profits by buying leftover merchandise from major retailers and reselling them to discounters.
GLC promised investors returns from 50 to 380 percent. The Securities Exchange and Commission discovered that $12 million of the $80 million raised from almost 100 investors was used to purchase leftover merchandise. Remaining funds were used to pay fake returns.
The two are charged with conspiracy to commit wire fraud, mail fraud, unlawful transportation of interstate securities and money laundering.
Donnan and Crabtree pleaded not guilty to the charges Tuesday and were released on $25,000 unsecured bonds with travel restrictions.