clock menu more-arrow no yes mobile

Filed under:

Jim Donnan: NOT GUILTY On All 41 Counts In Federal Ponzi Scheme Trial

Coach Beamer not called to testify in Jim Donnan's ponzi scheme trial which went to the jury on Wednesday and took more than 12 hours to deliberate.

Franchione reportedly received commissions from GLC and Donnan for bringing on new investors.
Franchione reportedly received commissions from GLC and Donnan for bringing on new investors.

With the jury unable to reach a verdict since being handed the case on Wednesday, who was to tell if the jury believed Donnan's story or just part of it. After all there were 41 separate counts to be read including wire fraud, mail fraud, conspiracy and money laundering. If the jury didn't reach a verdict today, deliberations would have continued Monday instead of on Saturday.

Frank Beamer had been on the witness list along with Mack Brown, Barry Switzer, Bill Parcells, along with former UGA players Hines Ward and Boss Bailey. But off of an extensive list of high-profile witnesses, the prosecution was compelled to bring just four witnesses: Tommy Tuberville (Cincinnati Football Coach); Mark Gottfried (NC State Basketball Coach); Billy Gillispie (former Texas A&M Basketball Coach); and Dennis Franchione (former Texas A&M Football Coach).

You can read about Coach Beamer's limited involvement here, which indicates that his involvement was among the milder ones allegedly perpetrated by GLC and the duo of Gregory Crabtree and Donnan.

Crabtree, the founder, had been running a profitable operation (on paper) until this caper began. He has already plead guilty and is awaiting sentencing of up to five years for his role. Donnan, quite naturally, claimed he and his family were duped by Crabtree and were big losers in the almost $23MM that was bilked from the investors.

There were murmurs that an acquittal was in the works, but with 41 counts and a need for forensic accounting to be re-explained to the jury of seven women and five men, it was understandable for it to be slow-going.

If anything comes of this beyond wasted Federal taxpayer dollars, it's that investors should never believe in promised returns on investment that exceed 15% (just to be safe I say 10%); and certainly not the 70% that was promised in a number of these dealings (FRANK!).

Amazingly, the Federal government supposedly wins 95% of the cases it undertakes, so this makes Donnan a rare winner. He best be on the lookout for dark sedans with tinted windows going forward, Uncle Sam doesn't like to lose.

And for those of you who still wanted to see Donnan convicted of something, you'll just have to settle for this:

Have a great weekend! We know the jury will, knowing they can resume their lives after having them hijacked by this tomclownery over the last week and a half.