Ex-Patriot & Banker Sentenced in $35M Ponzi Scheme

BOSTON – A brazen scheme to fleece investors out of millions collapsed today as a former New England Patriots player and a former bank executive were sentenced to federal prison. Will D. Allen, 38, of Davie, Fla., and Susan Daub, 56, of Coral Spring, Fla., each received six years behind bars for orchestrating a $35 million Ponzi scheme that preyed on those seeking high returns through loans to professional athletes.

U.S. District Court Judge William G. Young handed down the sentences, along with three years of supervised release and an order for restitution totaling approximately $16.8 million. The judge immediately remanded both Allen and Daub to the custody of the United States Marshal Service. The pair pleaded guilty in November 2016 to two counts of wire fraud, one count of conspiracy, and one count of money laundering, following their arrest in June 2015 after a civil complaint from the Securities and Exchange Commission.

The scheme, run through their Massachusetts-based company Capital Financial Partners (CFP), promised investors returns fueled by high-interest, short-term loans to pro athletes. While some legitimate loans were made, Allen and Daub systematically diverted investor funds – a staggering $35 million in total – to enrich themselves and fund other ventures. To date, a paltry $22 million has been recovered, leaving investors holding the bag.

The operation was a classic Ponzi scheme: new investor money was used to pay off earlier investors, creating the illusion of profitable returns. Allen and Daub further misled investors by inflating the size of loans purportedly made to athletes, allowing them to collect more funds than they actually lent out. They crafted a facade of legitimacy, with Allen leveraging his NFL status to gain trust. “Mr. Allen’s conduct is especially egregious,” stated Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation. “He used his status as an NFL athlete to legitimize his dealings with investors.”

“The defendants’ elaborate Ponzi scheme robbed many of the investors of a stable financial future,” said Acting United States Attorney William D. Weinreb. “The significant sentences the Court imposed today should remind investment professionals to handle their clients’ money with the transparency and integrity that the law requires.” Harold H. Shaw, Special Agent in Charge of the FBI’s Boston Field Division, added, “Mr. Allen and Ms. Daub lied, cheated and swindled investors out of millions of dollars for their own personal enrichment. This behavior destroys the financial security of hard-working individuals.”

The case was prosecuted by Assistant U.S. Attorneys Seth B. Kosto and Brian A. Pérez-Daple of the Economic Crimes Unit, with assistance from the Securities and Exchange Commission. The investigation serves as a stark reminder that financial crimes, no matter how cleverly concealed, will be pursued and punished. The Grimy Times will continue to follow this case and report on any further developments.