Will Allen was a defensive stalwart for 12 years. The cornerback accumulated 525 tackles and 15 interceptions in a dozen NFL seasons for the Giants, Dolphins and Patriots. At his peak, Allen signed a four-year $12 million contract with the Dolphins in 2006 that led to a two-year $16.2 million extension with $10 million guaranteed.
On Monday, Allen's defense was weak and his wallet is in debt. The Securities and Exchange Commission (SEC) has charged Allen, 36, and business partner Susan Daub, 54, with fraud. A Boston federal judge has frozen Allen and Daub's assets, as the two appear to have operated a Ponzi scheme.
According to a report in The Wall Street Journal, Allen and Daub advertised their business, Capital Financial Partners, as a means of providing athletes up to $75,000 in loans during the off-season or early in the season, when contracts paychecks are lower. Investors could receive up to 18 percent in interest from clients in the NFL, NBA, NHL and MLB.
At least 40 investors provided Capital Financial Partners with $31 million. Allen and Daub used some of that money for personal expenses, which included payments at pawn shops, casinos and nightclubs. Only $18 million were loaned to athletes.Only $18 million were loaned to athletes.
Perhaps Allen and Daub could have continued to get off on their Ponzi scheme had it not been for a conflict brought about by Jack Johnson of the NHL's Columbus Blue Jackets. Johnson, a former U.S. Olympian, filed Chapter 11 bankruptcy last year. As early as the 2012 NHL lockout, Johnson started doing business with Allen.
As part of Allen's lawsuit against Johnson last year, Allen was deposed in Palm Beach County, as the former Dolphin lives in Davie, Fla. According to the Palm Beach Post, Allen admitted to loaning Johnson as much as $1.4 million a month at a 12 percent interest rate, an illegal rate in Florida. As the case worked its way up to the SEC, Allen claimed to have loaned as much as $3.4 million to Johnson, although Allen told investors this total was $5.6 million.
The Wall Street Journal report claims at least 24 investors funded $4 million of a $5.65 million loan in April and May 2014, which runs parallel with the Johnson anecdote. The SEC found a $3.4 million loan was made to the unnamed NHL player (who, according to the Palm Beach Post story, is likely Johnson).
Way back in November, Johnson said of his bankruptcy, "I'd say I picked the wrong people who led me down the wrong path." The Columbus Dispatch reported those people were Johnson's parents. Now, those people may be Will Allen and Susan Daub.
Allen, a former First-Team All-Big East defensive back at Syracuse, does not exactly have a clean record. Allen was charged with a DUI in Miami Beach in February 2010 during his tenure with the Dolphins.
Now, he can add Ponzi scheme to that record.
-- Follow Jeffrey Eisenband on Twitter @JeffEisenband.
