A former NBA player was indicted in Newark today for allegedly perpetrating a $2 million Ponzi scheme, the U.S, Attorney’s Office announced today.
C.Tate George, who once played for the New Jersey Nets and Milwaukee Bucks, already faces a charge of wire fraud in addition to the four charges the 43-year-old city resident received today.
George, the CEO of The George Group, allegedly claimed to have more than $500 million in assets under management when he asked prospective investors, including several former professional athletes, to invest with the firm, telling them their money would be used to fund real estate development projects throughout the region, according to the indictment. George personally guaranteed a return on their investments, with interest, according to the US Attorney.
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Authorities allege that from 2005 to 2011, George deposited more than $2 million of investors’ funds in the firm’s and his personal bank accounts. But instead of using investments to fund real estate development projects, George used the money from new investors to pay existing investors a seeming return in Ponzi-scheme fashion. He also used some of the money for home improvement projects, meals at restaurants, clothing and gas, authorities said, but the firm itself had virtually no income-generating operations.
Under the wire fraud counts with which he is charged, George faces a maximum potential penalty of 20 years in prison and a $250,000 fine for each count.
Anyone who may have information about this case, or believes they were a victim, are urged to call the FBI at 973-792-3000.
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