ATHENS - Former University of Georgia football coach Jim Donnan’s federal trial on fraud charges enters its second week today.
The prosecution is scheduled to resume presenting its case this morning. Attorneys on both sides have told U.S. District Judge C. Ashley Royal that testimony might be wrapped up by Friday.
Donnan is facing charges of conspiracy, wire fraud, mail fraud, money laundering and security fraud, all related to an alleged scheme in which investors lost almost $23 million.
According to prosecutors, the investors, mostly recruited by Donnan, were promised large rates of return from a West Virginia-based business that was said to buy closeout merchandise and resell it at substantial profits. But early investors were repaid from the contributions of later investors in what amounted to a Ponzi scheme, the prosecution has alleged.
Donnan’s lawyers have contended that the former coach believed the business, GLC Limited, was actually a great investment and therefore wanted to include friends and family members in it. Some of the people who lost money have said they don’t believe Donnan was deliberately deceiving investors.