Recovering Losses caused by Investment Misconduct

Former University of Georgia Coach Jim Donnan to Settle with GLC for $5.5M

Jim Donnan, a former University of Georgia football coach, has agreed to settle a lawsuit between his family and GLC Limited for $5.5 million in cash and assets.

GLC Limited, a West Virginia corporation with a facility in Proctorville, Ohio, filed an Adversary Complaint against the Donnans as part of the company's Chapter 11 Bankruptcy proceeding. In the complaint, GLC alleged that Donnan and GLC's founding owners, Greg and Linda Crabtree of Ohio, were involved in the orchestration and perpetuation of a Ponzi scheme that forced GLC into bankruptcy.

According to court documents, Donnan and his wife were among the first investors in GLC. They invested a total of $5.4 million at an interest rate of over 50 percent, and earned more than $14.5 million from their investment.

In the complaint, GLC alleged that Jim Donnan represented himself as an officer of GLC to third parties, that he signed applications and agreements on behalf of the company, and that he and his wife agreed to solicit investments for the company. Donnan has denied direct involvement in the Ponzi scheme, but has acknowledged that GLC may have enough evidence to result in the settlement. (For more information on the case, click here.)

As reported in The Herald-Dispatch, the settlement states that: "The Donnans want the investors who lost money to recoup as much of their losses as possible. They also recognize that if they received the funds as part of a Ponzi scheme, they would be liable for return of much of their net winnings."

The U.S. Bankruptcy Court must still approve the settlement. The court's decision is expected to occur by the end of the month. The civil settlement would not affect any outstanding or ongoing criminal investigation into the GLC fraud.

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