POSTED: 09:06 a.m. HST, May 09, 2014
ATHENS, Ga. >> Several investors testified that the former University of Georgia football coach on trial on fraud charges assured them the investment opportunity he was pitching carried virtually no risk and would bring tremendous returns.
The investors testified Friday in federal court in Athens that their relationship with Jim Donnan and their trust in him prompted them to invest. They all lost sums of money ranging from tens of thousands of dollars to more than a million.
Donnan faces charges of conspiracy, mail fraud and wire fraud. He and another man are accused of running a scheme through GLC Limited, Inc., a West Virginia-based company dealing in closeout merchandise.
Prosecutors say Donnan falsely told investors that they were investing in "presold deals" when he and his partner were actually buying merchandise and then looking to sell it.