Former NBA player indicted for Ponzi scam

March 23, 2012 at 4:18 PM   |   0 comments

NEWARK, N.J., March 23 (UPI) -- Former National Basketball Association player C. Tate George has been indicted for defrauding investors out of $2 million, the U.S. Justice Department said.

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.

© 2012 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
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