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Ex-NBA Star Sentenced to 9 Years for $2 Million Ponzi Scheme
C. Tate George, the former CEO of The George Group, was sentenced to 108 months in prison for orchestrating a $2 million investment fraud scheme, announced U.S. Attorney Paul J. Fishman for the District of New Jersey.
George, a former player for the New Jersey Nets and Milwaukee Bucks, was convicted of all four counts of the indictment after a three-week trial in September 2013. Judge Mary L. Cooper imposed the sentence in Trenton federal court.
“Those who perpetrate Ponzi schemes shamelessly trade on relationships with those who trust them,” said U.S. Attorney Fishman. “In this case, George relied on his sports stardom to attract unwitting investors. His crimes justified today’s lengthy sentence.”
George held himself out as the CEO of The George Group and claimed to have more than $500 million in assets under management. He pitched prospective investors, including several former professional athletes, to invest with the firm and told them their money would be used to fund real estate development projects.
Instead of using investments to fund real estate development projects, George used the money from new investors to pay existing investors in Ponzi-scheme fashion, as well as paying for his daughter’s sixteenth birthday party, extensive renovations on his New Jersey home, and other personal expenses. The defendant gave money to family members and friends and also spent $2,905 for a reality video about himself.
In addition to prison time, Judge Cooper also sentenced George to three years of supervised release, ordered him to $2.55 million in restitution and entered a forfeiture money judgment of $2.55 million. U.S. Attorney Fishman credited special agents of the FBI, postal inspectors of the U.S. Postal Inspection Service, and criminal investigators with the U.S. Attorney’s Office with the investigation leading to today’s sentence.
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Key Facts
- State: New Jersey
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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