Former University of Georgia football coach Jim Donnan has agreed to a bankruptcy settlement with investors after he was accused of running a $40 million Ponzi scheme through a company he helped found.
Donnan, a Georgia coach from 1996 to 2000, was an initial investor with a company called GLC Limited, which bought and sold appliances. As an early investor, Donnan allegedly had knowledge of the company’s poor infrastructure, which promised payouts of 50 to 70 percent interest to investors, and actively recruited other high-profile investors, including coaches Barry Switzer, Frank Beamer, Dennis Franchione and Tommy Tuberville.
GLC was unable to keep its promised payouts and filed for bankruptcy in 2011. In court proceedings, company board members accused Donnan of recruiting new investors even though he knew the company could not pay them a return on their investment.
As a result of multiple personal lawsuits stemming from the company bankruptcy,Donnan filed for Chapter 11 bankruptcy last year. Although he has not been charged with a crime, Donnan’s business decisions led to significant financial losses for a number of people. Through filing Chapter 11 bankruptcy, Donnan has remained in control of his finances with oversight from the court and retained control of his assets while working on a settlement for investors. Although we’re not supporting Donnan’s business practices, his case is a good example of how bankruptcy can help you restructure yourself financially.
Most people struggling financially do not file for Chapter 11 bankruptcy, but Chapter 13 is an option for people struggling with debt. Chapter 13 bankruptcy is excellent for people who need financial reorganization. Items like cars or homes can be saved under a Chapter 13 repayment plan. A Chapter 13 bankruptcy also allows for the discharge of unsecured debt, like credit card debt or medical bills, if money is still owed following the successful completion of a repayment plan.
If you’ve owned a small business that has left you in a financial dilemma, talk to an attorney about what Chapter 13 bankruptcy can do for you. Contact our office now for a free consultation.
Law Firm of Kevin D. Judd– Washington DC bankruptcy attorney