Former NFL cornerback Will Allen and his business partner are facing civil fraud charges from federal regulators over allegations the pair ran a multi-million dollar Ponzi scheme . They 're accused of reaping more than $ 31 million in a Ponzi scheme that promised high returns to investors from funding loans to cash-strapped pro athletes . The Securities and Exchange Commission announced the charges Monday against William D. Allen , Susan Daub and their Capital Financial Partners investment firms . Allen , 36 , was a cornerback in the NFL from 2001 to 2012 , playing for the New York Giants and the Miami Dolphins . Accused : Former NFL cornerback Will Allen and his business partner are facing civil fraud charges from federal regulators over allegations the pair ran a multi-million dollar Ponzi scheme ( file photo ) He was signed by the New England Patriots in March 2012 but was placed on injured reserve the following August , and he left football in March 2013 . Daub , 54 , is a financial professional who also lives in Florida , according to the SEC . The SEC said Allen and Daub paid about $ 20 million to investors but received only around $ 13 million in loan repayments from athletes . To make up the gap they paid investors with other investors ' money rather than actual profits on the investments , in a classic Ponzi scheme , the agency said . The SEC said Allen and Daub misled investors about the terms and even the existence of some of the loans , telling them they could receive interest on the loans of up to 18 percent from the athletes . The pair used some funds from investors to cover personal charges at casinos and nightclubs and to finance other business ventures , the agency alleged . The SEC 's criminal complaint quoted the website for Capital Financial as saying 'In many cases , athletes ' contracts do not allow them to access their guaranteed money during the off season or early in the season when they may need a significant sum to purchase a house or car , pay the bills , or meet a financial demand . 'By pooling the resources of a network of investors , CFP gives athletes access to money when they need it while providing investors with solid , short-term returns on investment . ' The SEC said its lawsuit against Allen and Daub was filed under seal in federal court in Boston last week and unsealed on Sunday . The agency won an asset freeze against them from the court last week . Two of their firms are based in Boston . Scam : The SEC alleges that Allen and his business partner Susan Daub used some funds from investors to cover personal charges at casinos and nightclubs and to finance other business ventures ( file photo ) The SEC is seeking an injunction against Allen and Daub and the firms , as well as unspecified penalties and restitution of allegedly ill-gotten gains . Paul Levenson , director of the SEC 's regional office in Boston , said in a statement : 'The defendants sold investors on the idea of lending money to pro athletes , but we allege that ’ s not where a large portion of the investors ’ money went . 'As in any Ponzi scheme , the appearance of a successful investment was only an illusion sustained by lies . ' The telephone was n't answered at a listing for Will D. Allen in Davie , Fla. , where Allen is said to live . A person answering the phone at Daub 's home said there was no comment . They are not represented in the case by attorneys , according to the SEC .
Former NFL cornerback Will Allen and his business partner Susan Daub are facing civil fraud charges from federal regulators . They allegedly reaped over only around $ 13 million in a Ponzi scheme that promised high returns to investors from funding loans to cash-strapped pro athletes . Allen , 36 , was a cornerback in the NFL from 2001 to 2012 , playing for the New York Giants and the Miami Dolphins . The SEC said Allen and Daub paid about $ 20 million to investors but received $ 31 million in loan repayments from athletes . To make up the gap they paid investors with other investors ' money rather than actual profits on the investments , the agency said .