Ex-NFL Player Gets 2.5 Years for $5 Million ‘African Goldmine’ Ponzi Scheme
This week, former linebacker John Leake of the Atlanta Falcons and Green Bay Packers received a sentence of two and a half years in federal prison for wagering money that he had pledged to invest in gold mines in West Africa.
Leake, 43, from Plano, Texas, persuaded friends and family to invest over $8 million in his fraudulent business schemes, with over $5 million now gone.
The ex-NFL star spent the funds on casino gambling and various personal costs, or to reimburse individuals he had previously stolen from. This was an attempt to sustain the scam, characteristic of a Ponzi scheme.
Invented Enterprises
Between June 2015 and March 2020, federal prosecutors indicated that Leake requested funds from six victims. Besides goldmines, he asserted that he was investing in real estate and subleasing high-end properties. He released deceptive promissory notes and personally assured returns even though he lacked the assets or income to back his assertions.
“Leake knew these investment opportunities often were fabricated and non-existent and were devised by Leake to defraud victims and trick them into giving him money,” the DOJ statement said.
"Leake duped his victims by lying that he had invested large amounts of his own money in the purported business ventures he promoted. Leake rarely invested his own money into them.”
In September, the defendant entered a guilty plea for wire fraud and money laundering involving transactions. In addition to sentencing him to prison on Monday, US District Judge John F. Walter directed Leake to pay $5,314,059 in restitution to his six victims.
Gambling Addiction
“Mr. Leake committed these crimes based largely on his being a gambling addict and he feels terrible about deceiving his friends to fuel that addiction,” Leake’s attorney, Evan J. Davis told USA Today. “Fortunately, he has turned a corner with his treatment and is on the right path.”
Leake participated in college football with the Clemson Tigers from 2000 to 2003, securing victory in the Peach Bowl during his last season. In 2004, he was signed by the Tennessee Titans, then transferred to the Falcons and subsequently, for a short time, the Packers.
Leake is not the initial former NFL player to have devised a Ponzi scheme. In 2015, Will Allen, a former cornerback for the New York Giants, Miami Dolphins, and New England Patriots, was apprehended and accused of orchestrating a $35 million scheme involving loans to professional athletes.
He admitted guilt to federal charges of fraud, conspiracy, and money laundering and received a six-year prison sentence, coupled with a directive to pay $16.8 million in restitution.
Check Out Other News
UK