Miami Dolphins

Former Dolphins cornerback sentenced to federal prison

Dolphins cornerback Will Allen reaches for Denver Broncos quarterback Tim Tebow in the third quarter at Sun Life Stadium, Oct. 23, 2011.
Dolphins cornerback Will Allen reaches for Denver Broncos quarterback Tim Tebow in the third quarter at Sun Life Stadium, Oct. 23, 2011. MIAMI HERALD STAFF

Former Dolphins cornerback Will Allen wore aqua and orange for the last six seasons of his 11-season NFL career. He wore orange while playing football and getting an economics degree at Syracuse University. Now, Allen will wear orange for the next six years in federal prison and pay $16.8 million restitution out of his personal economics.

That’s the sentence handed down Wednesday in U.S. District Court for the District of Massachusetts after Allen pleaded guilty to two counts of wire fraud, one count of conspiracy to commit wire fraud and one count of monetary transactions in proceeds of specified unlawful activity. Coral Springs resident Susan Daub received the same sentence on the same charges.

Allen and Daub admitted to using their company, Capital Financial Partners, to run a ponzi scheme after they formed it in June, 2012. This was a year after Pro Player Funding won a judgment against Allen reportedly for $576,066.

According to Allen’s statement of facts in the guilty plea, Allen and Daub sold their business to investors as a finance company giving high-interest, short-term loans to athletes. The pitch went thusly: CFP would get the fee charged to the athletes for getting the money together and investors would make money off the interest of the loans. The principal of those loans could be $500,000 or more.

And, Allen and Daub claimed these loans couldn’t be safer because the athletes would repay the loans via direct deposit out of guaranteed money from their team. Investor funds would be pooled to make the loans.

Instead, the statement of facts said, “Although that sometimes occurred, Allen and Daub also used investor money for their personal benefit and to pay other investors, falsely telling the recipients of new investor funds that the money was principal and interest payments on the investors’ original loans.”

That’s a classic ponzi scheme.

Also, Allen and Daub sometimes overcollected for a loan or collected money for loans they never made. In one case, Allen diverted $400,000 of investor funds to a real estate purchase by Encore Capital Partners, which Allen owned with Daub and her son.

Allen admitted he and Daub misused $9.5 million to $25 million of the $37 million they raised.

After five seasons as a starter with the New York Giants, Allen signed with the Dolphins in 2006 as a free agent. He started the first 53 games he played with the Dolphins from 2006 to 2009. He missed the entire 2010 season with a knee injury, then started six of 15 games in 2011. The Dolphins released him. He signed with New England but didn’t make it out of the 2012 preseason.

In February, 2010, Allen tried to drive his Ferrari around a roadblock in Miami Beach. Police stopped Allen and eventually arrested him for DUI. Allen pleaded guilty to a reduced charge of reckless driving.

David J. Neal: 305-376-3559, @DavidJNeal

Charles Ponzi didn’t invent his eponymous pyramid scheme — but he lent star power to one of the oldest scams in the book. He also believed that his plan could have become a legitimate business.

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