SWITZER'S SECOND SUIT
Barry Switzer, the former University of Oklahoma football coach, is being sued for failing to repay some of the money from an $80 million Ponzi scheme he was involved in, according to a lawsuit.
Fellow coaches and football players were some of the . After the Ponzi scheme came to light Switzer agreed to a settlement that required him to pay back a portion of his earnings.
Switzer has declined to comment and is directing media to his attorney, Armando Rosell.
"He (Switzer) has fully adhered to his obligations and will be successful against any lawsuit filed against him in that regard," Rosell said.
Officials have also claimed Switzer's son-in-law, Hunter Miller, and Jim Donnan, an inductee in the College Football Hall of Fame and offensive coordinator under Switzer, was one of the operators of the Ponzi scheme.
THE SCHEME
In 2012, a federal grand jury originally indicted Donnan on fraud charges but acquitted him two years later. Authorities said the scheme he allegedly managed cheated nearly 100 investors out of millions of dollars.
Prosecutors said Donnan and his business partner, Gregory Crabtree, created a business called GLC Limited and told investors it was a wholesale liquidation business. They are said to have told them they had lucrative profits from buying leftover merchandise from major retailers at a discount and then reselling it.
However, the U.S. Securities and Exchange Commission said only $12 million of the $80 million GCL raised from investors was used to purchase leftover merchandise. The remaining money is claimed to have been used to pay fake returns to early investors and enrich the scheme's operators.
Crabtree pleaded guilty to conspiracy to commit fraud and was sentenced to five years in a federal prison. He was then ordered to pay more than $20 million in restitution to the victims.
THE FIRST LAWSUIT
GLC Limited filed for bankruptcy in 2013. A restructuring company took control and claims Switzer owes them money that was fraudulently transferred to them before 2013. Shortly after they filed suit against Switzer, his son-in-law, Hunter Miller, and other operators of the scheme.
According to documents from the lawsuit GLC filed in an Ohio bankruptcy court involving Switzer's investment in GLC, Switzer and a shell company, Switzer Family LLC, gave $250,000 to Donnan in 2010 to invest in GLC and were promised an 80 percent return on the investment.
GLC subsequently made about $100,000 in payments to Switzer, the 2013 lawsuit claims.
As a result of the lawsuit, Crabtree pleaded guilty to conspiracy to commit fraud and was sentenced to five years in a federal prison. He was then ordered to pay more than $20 million in restitution to the victims.
Switzer and Miller were able to settle the lawsuit and they agreed to pay $95,000 for their involvement in the Ponzi scheme. So far they've only paid $52,500 and have failed to pay the remainder of the amount.
