A former bank vice president pled guilty on Monday, November 21 in connection with an investment scheme involving fraudulent loans to professional athletes. Her co-defendant, a former New England Patriots player, pled guilty to similar charges last week.
Susan Daub, 56, of Coral Spring, Fla., pled guilty to two counts of wire fraud, one count of conspiracy and one count of money laundering. She was scheduled for sentencing on Feb. 13, 2017. Will D. Allen, 38, of Davie, Fla., pled guilty on Monday, Nov. 14, 2016, to two counts of wire fraud, one count of conspiracy and one count of money laundering. He is scheduled to be sentenced on Feb. 9, 2017.
In June 2015, Allen and Daub were arrested on criminal charges after being sued by the Securities and Exchange Commission in April 2015. Between 2012 and April 2015, Allen and Daub defrauded investors out of millions of dollars by claiming that the funds would be used to back high-interest, short-term loans to professional athletes through Capital Financial Partners (CFP), Allen and Daub’s Massachusetts-based company. While CFP did make some loans to athletes, Allen and Daub also diverted millions of investor dollars to themselves and other business ventures. In total, Allen and Daub took in over $35 million in investments. To date, they have repaid less than $22 million.
As part of the fraud, Allen and Daub collected money from investors to fund fictitious loans, then used the money, in part, to pay themselves. Other times, Allen and Daub told some investors that the loans CFP made to professional athletes were larger than they actually were, allowing Allen and Daub to collect more money from investors than they were lending out to athletes. To keep investors from discovering their fraud, Allen and Daub used newly invested money to make payments to existing investors, which they falsely characterized as interest and principal payments from athlete borrowers.