tom in salem
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http://www.nj.com/news/index.ssf/2011/09/former_nj_nets_player_arrested.html
NEWARK — Federal authorities arrested former New Jersey Nets player Tate George this morning on charges that a purported real estate development firm he ran was actually a $2 million Ponzi scheme.
According to a complaint unsealed this morning, George, 43, of Newark, held himself out as the CEO of The George Group, which he claimed managed more than $500 million in assets, and represented to would-be investors, who included former professional athletes, that he would use their funds to buy and develop real estate projects in New Jersey and elsewhere. Between 2005 and March 2011, investors gave George roughly $2 million, according to the complaint. But instead of using the money to fund the promised projects, George used new money to pay existing investors and for his own personal use, authorities said. In reality, The George Group had virtually no income generating operations, authorities said.
George surrendered this morning to the Federal Bureau of Investigation and US Postal Inspection Service. He was charged with one count of wire fraud and is slated to appear this afternoon in Newark federal court. His attorney, Thomas Ashley of Newark, did not return a message immediately.
NEWARK — Federal authorities arrested former New Jersey Nets player Tate George this morning on charges that a purported real estate development firm he ran was actually a $2 million Ponzi scheme.
According to a complaint unsealed this morning, George, 43, of Newark, held himself out as the CEO of The George Group, which he claimed managed more than $500 million in assets, and represented to would-be investors, who included former professional athletes, that he would use their funds to buy and develop real estate projects in New Jersey and elsewhere. Between 2005 and March 2011, investors gave George roughly $2 million, according to the complaint. But instead of using the money to fund the promised projects, George used new money to pay existing investors and for his own personal use, authorities said. In reality, The George Group had virtually no income generating operations, authorities said.
George surrendered this morning to the Federal Bureau of Investigation and US Postal Inspection Service. He was charged with one count of wire fraud and is slated to appear this afternoon in Newark federal court. His attorney, Thomas Ashley of Newark, did not return a message immediately.
