If the $2.3 million that Billy Gillispie reportedly lost in the David Salinas Ponzi scheme wasn’t enough, it’s now being reported that Gillispie lost up to $3 million more in another Ponzi scheme involving former Georgia football coach and ESPN analyst, Jim Donnan. In this article from SPORTSbyBROOKS, The West Virginia-based company, Global Liquidation Center Ltd. (GLC) that accused Donnan of this and claimed that his scheme bankrupted the company said that Donnan defrauded the company and investors of over $27 million.
Of Gillispie’s involvement SbB says this:
Documents in Donnan’s handwriting submitted by GLC to the federal bankruptcy court indicate Texas Tech basketball coach Billy Gillispie gave Donnan at least $3 million – in separate payments – to “loan” to GLC at exorbitant annual interest rates.
In one of the payments to Donnan, Gillispie signed off on a GLC company document indicating a $1 million loan to GLC at a 60 percent annual interest rate. Donnan later noted in one of his handwritten accounting documents that current Texas State football coach Dennis Franchione was to be paid five percent of Gillispie’s seven-figure buy-in. ($12,500.)
In another GLC loan agreement document, Gillispie was given a 65 percent annual interest rate in exchange for a $2 million loan – solicited by Donnan – to the company. (Though that document was not signed by Gillispie.)
In another federal court document submitted by GLC last month, Donnan’s handwriting shows Franchione as credited with a 10% commission on what appears to be a May 1 six figure payment from Gillispie to GLC via Donnan.
Franchione and Gillispie were far from the only coaches and sports figures who, according to Donnan’s handwritten notes, loaned him large sums of money at staggering interest rates.
Interest rates that GLC, a small retail merchandise liquidation firm, was obligated to pay.
Here’s some of the sports figures listed in Donnan’s somewhat indecipherable handwritten notes – and what they may have paid the former coach. (At least based on Donnan’s primitive accounting practices.):
1.) Tommy Tuberville: $800,000
2.) Frank Beamer: $175,000
3.) Billy Gillispie: $3,000,000+ (one of two loan agreements unsigned)
4.) Dennis Franchione: $650,000
5.) Mark Gottfried: $250,000
6.) Kendrell Bell (Former NFL player): $2,075,000 (two of four loan agreements unsigned)
7.) Jonas Jennings (Former NFL player): $500,000 (loan agreement unsigned)
8.) Mike Gottfried (Former ESPN analyst, CFB coach): $250,000
9.) Tom Luginbill (ESPN recrutiing analyst): $30,000
10.) Barry Switzer: $50,000
This story isn’t going to go away quietly. If Billy Gillispie really has lost the over $5 million that has been reported in his two Ponzi schemes, he probably needed that Texas Tech head coaching job more than we realized. It’ll be interesting to see what develops from this and what the future holds for Billy G.