The grand jury indictment alleges George bilked investors out of $2 million to raise funds for the George Group, a firm that was to invest in real estate.
Instead, prosecutors say the deal was a Ponzi scheme in which new investors helped repay earlier investors in the scheme. At the same time, there was no real business to speak of, prosecutors say.
The fraud allegedly took place between 2005 and 2011. George, a former player for the New Jersey Nets and the Milwaukee Bucks, was indicted by a grand jury in Newark, N.J., The Wall Street Journal reported Friday.
Allegedly, George used the funds that were supposed to go toward real estate deals for his own personal use.
George could receive fines of $250,000 and a 20-year jail sentence for each count, the Journal said.