NBA Player George Tate to Attend Court for Ponzi Scheme Charges?
Former NBA player C. Tate George is expected in federal court Friday afternoon for his initial appearance concerning his involvement in a wire fraud charge ponzi scheme, in which he is suspected to have stolen $2 million from unassuming investors.
The investigation is due in part to President Obama’s Financial Fraud Enforcement Task Force, implemented in 2009 to monitor potential investment ponzi schemes and reward victims their money.
Tate, who formerly played for the NJ Nets and the Milwaukee Bucks, is being charged for ring leading a self made ponzi scheme as the CEO of The George Group, which advertised $500 million in assets promising high return real estate projects to investors.
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Supposed real estate projects were to commence in Florida, New Jersey, Connecticut, and Illinois, and investments were promised to be returned, with interest.
Tate garnered $2 Million from private investors from 2005 and March 2011, some of which were from fellow professional athletes.
As affirmed by the US Attorney’s Office of New Jersey, George allegedly participated in “classic ponzi scheme fashion” by recycling the money he received from new investors to pay current investors.
“In reality, the George group had virtually no income generating options,” reported the Attorney Office’s press release.
George was depositing money into his personal bank account, using it “for home improvement projects, meals at restaurants, clothing, and gas,” the press release stated.
“The Complaint was written, signed by a federal judge, filed under seal, and unsealed this morning. George surrendered,” said Rebekah Carmichael, Office of Public Affairs for the US Attorney’s Office of Newark.
Carmichael also noted that this is George’s initial appearance, and there are still many steps to be taken for the case to go to trial. His initial appearance would have to be indicted, first, before a trial process started.
Tate, now 43, will appear in front of U.S. Magistrate Judge Patty Shwartz in his hometown of Newark, NJ on Friday afternoon at 2:15 pm for his initial appearance.
If found guilty after trial, he faces 20 years in federal prison and a $250,000 fine.
