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Billy G and his SECOND Ponzi scheme

Seriously?

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.

Article written by Matthew Hays

45 Comments for Billy G and his SECOND Ponzi scheme



  1. DTI
    8:08 pm August 6, 2011 Permalink

    That man does not like signing documents.



  2. Owen
    8:14 pm August 6, 2011 Permalink

    Wait, so what was the other one? I thought that was the one we already knew about?



  3. tdogg4033011
    8:23 pm August 6, 2011 Permalink

    He has proven he is an idiot in several different ways, why do we need to keep talking about him??



  4. Ira Tatum
    8:25 pm August 6, 2011 Permalink

    This subject is not remotely funny.
    When a thief steals, this kind of money, all concepts, remotely ‘religious’, are window elimination.
    Rule # 1: Trust no one.
    Rule #2 = if you trust someone enough to manage your millions, have an “INS policy” to cover the losses.



  5. coochiecoo
    8:28 pm August 6, 2011 Permalink

    The level of idiocy is mind boggling.



  6. Karma
    8:32 pm August 6, 2011 Permalink

    Muahahahaha



  7. Caftaninvalley
    8:36 pm August 6, 2011 Permalink

    This soooo explains the drinking.



  8. Mr.economy
    8:42 pm August 6, 2011 Permalink

    Who is billy’s financial advisor? Timothy Geither!!!



  9. radtech
    8:49 pm August 6, 2011 Permalink

    I hate a freaking theif. I honestly think people like that ought to be shot. Bernie Nadoff is another one



  10. GODSAZNO
    8:53 pm August 6, 2011 Permalink

    Do you really have to invest the 3 million? Your not able to live the rest of your life on it?



  11. blitzedanddazed
    8:54 pm August 6, 2011 Permalink

    The BCG story keeps getting darker and darker.



  12. reedwizard
    8:54 pm August 6, 2011 Permalink

    hahaha…priceless



  13. Ira Tatum
    8:56 pm August 6, 2011 Permalink

    @6, precisely.
    Rule #3 = Enjoy the splendid belly laugh, Karmatically, that the “INS” covered – while not attending services.



  14. Ira Tatum
    9:07 pm August 6, 2011 Permalink

    This story is sad because Billy Clyde Gillispe ‘trusted’ someone, conceievably, at his weakest moment – after he settled for $ome amount, and, in trying to restore life order, presumably invested in what he thought was righteous.
    Folks, this is wrong: plain & simple. Wrong.



  15. Guck Foodman
    9:32 pm August 6, 2011 Permalink

    A fool and his money are soon parted. It’s really sad at this point. You shouldn’t be able to get out of high school without some basic understanding of how to invest money.



  16. kyeric
    9:40 pm August 6, 2011 Permalink

    Hey Coach, I’d like to talk to you about an exciting opportunity that people are talking about!



  17. Yep
    9:53 pm August 6, 2011 Permalink

    Women and money….beware when either is too easy.



  18. Ira Tatum
    10:03 pm August 6, 2011 Permalink

    Folks: Bottom line – Dude lost his mom; then lost his ‘fortune’.

    BCG needs some slack.

    I wish BCG Godspeed in his tenure @ Texas Tech.



  19. NCAA is pathetic
    10:24 pm August 6, 2011 Permalink

    First of all, I’m a Christian. Secondly, I don’t make a lot of money and wouldn’t risk my money even if I did. The reason I said I’m a Christian is because I don’t have a lot of “things” but I do have the Lord and for those of you who have Jesus in you (the Holy Spirit) then you know that His grace is sufficient. Sounds to me that Billy Clyde has tried alcohol time and time again, and now he’s trying to invest in fraudalent schemes. I just wish Billy would try Jesus. Then he would be guaranteed happiness.

    GO BIG BLUE!!!!

    PS: I met some of the UK basketball players the other day and Coach O as well. Miller, Teague and Jones were incredibly nice (Lamb, Gilchrist, Davis not so much), but Coach O was amazing!! He is the nicest UK affiliate I’ve ever spoken to.



  20. .
    10:35 pm August 6, 2011 Permalink

    .



  21. shadowboxer
    10:42 pm August 6, 2011 Permalink

    BCG is an anomaly (and a moron). He is a gigantic disaster that was soon forgotten.



  22. Axe Cop
    10:44 pm August 6, 2011 Permalink

    19. Shut up.



  23. I shoot 4s
    10:54 pm August 6, 2011 Permalink

    19. You suck



  24. Matthew Hays
    11:16 pm August 6, 2011 Permalink

    19) Seriously dude?



  25. Gillygonnaget#8
    11:20 pm August 6, 2011 Permalink

    #19 not really a religious forum….take it to UL board- they need hope



  26. Tom Handy
    11:27 pm August 6, 2011 Permalink

    Investing over 5 million in schemes he was told would clear 65% per annum only proves BCG is a pure moron. Absolutely the most self destructive public figure in the last 5 years short of Amy Winehouse………..



  27. Really?
    12:23 am August 7, 2011 Permalink

    Jim Donnan? Ponzi scheme crook? How ’bout that.



  28. MTW
    6:04 am August 7, 2011 Permalink

    I love it that a BCG thread generates an ad for a site that allows people to check other peoples criminal backgrounds. Hilarious but not really. I hope he does well at Texas Tech. Just put the money in a savings account and you could probably live off the interest.



  29. Flyrock
    7:11 am August 7, 2011 Permalink

    This has become a different story. Where does this guy get $5 million in cash? Not even the UK coach has that lying around. He wasn’t getting Cal money. And does anyone think that a coach can act this recklessly without the brass noticing? There is a lot more to this, and who knows where it might lead. One thing is becoming clear, the coach liked taking risks. The difference in being a degenerate gambler and an unwise investor can be a pretty thin line. My guess is we will find out a good deal more.



  30. Beenthere...
    9:10 am August 7, 2011 Permalink

    nail on the head 26… how can anyone believe they can get a guaranteed return of 65%? Better yet how can such a person become head of the greatest basketball program in the country and be paid millions to do it?



  31. KCK
    9:25 am August 7, 2011 Permalink

    19) I tried Jesus once and didn’t experience this “guaranteed” happiness.



  32. RealTalk
    9:28 am August 7, 2011 Permalink

    I just wish Billy would try Chuck Norris



  33. NBA league pass
    11:04 am August 7, 2011 Permalink

    17) that about sums it up right there.



  34. catnuts
    11:15 am August 7, 2011 Permalink

    29) You stole my post. I believe this all may be some misinformation. I think this is still talking about the same ponzi scheme that we already knew about and maybe it was Donnan that got BCG to invest in it. I doubt that BCG had five million to lose. I don’t think he has earned enough money in his career to have that kind of money laying around to invest.



  35. Doug
    11:27 am August 7, 2011 Permalink

    19 Has as much a place to post on here as any of you all do. SexnNursenHolmes can get on here and talk about all kinds of fowl thngs and you all are ok with that. A Christian comes on here who is also an avid Cat fan and you all berate them.. You cant criticize anyone in our politically correct society except Christians, of which our nation was founded..

    Go cats and go Christians..



  36. john4uk
    11:38 am August 7, 2011 Permalink

    Seems to me Gillispie is the real christian here as he took his millions and gave it away.Of course he gave it for selfish reasons,65% interest.I’m surprised Gilispie has’nt bought into the Brooklyn Bridge,or swamp land in Florida.



  37. nashvillecatsfan
    11:39 am August 7, 2011 Permalink

    He’s either incredibly stupid or he knew that something was shady about that deal.



  38. Axe Cop
    12:49 pm August 7, 2011 Permalink

    35. “Fowl” things? Haha, he probably has mentioned a chicken ****er on here before.

    Also, you should research Thomas Jefferson’s views on Jesus Christ before you spout off nonsense like this country was founded by Christians.



  39. Inside Your Mind
    1:17 pm August 7, 2011 Permalink

    If you’re dumb enough to believe that you’re going to get back over 60% interest of your investment then you deserve to lose all of your money. BCG has proven he’s a complete idiot. Not only did he blow the opportunity of a lifetime to coach UK but he also lost millions of dollars on an obvious ponzi scheme. Don’t feel sorry for this moron.



  40. Horeb Uhl Cat Lic
    3:00 pm August 7, 2011 Permalink

    Thanks Doug 35. Thanks 19 Christian. Have to post this as it is appropo.

    Today’s reading 19th Sunday in Ordinary Time):

    Lord, be true to your covenant, forget not the life of your poor ones forever. RISE UP, O God, and defend your cause; do not ignore the shouts of your enemies.

    And today’s Gospel according to Matthew (not Jones) told the story of two of my heros walking on water.

    Bottom Line: RISE UP, and HAVE FAITH!



  41. Nurd83
    12:02 am August 8, 2011 Permalink

    19) I gave myself to Jesus but he never called back. Seriously though dude, shut up, nobody wants to hear your religious rant. And please, do us all a favor and study an ounce of history. http://www.youtube.com/watch?v=SBBdVEW2NmI&feature=related



  42. Nurd83
    12:13 am August 8, 2011 Permalink

    35) Are you completely stupid? This country was not founded upon Christianity. In fact, several of the founding fathers were devout Atheist, or deist (Benjamin Franklin, John Adams, Alexander Hamilton, James Madison, Thomas Jefferson, John Jay, and George Washington) . Also, Abraham Lincoln was an Atheist. Maybe next time you will do a little research before you decide to give your opinion.

    “In the affairs of the world, men are saved not by faith, but by the lack of it.” -Benjamin Franklin



  43. Redskinboy
    9:11 am August 8, 2011 Permalink

    41)Seriously? Zeitgeist..is your “religion”?? Wow. Do US all a favor and study an ounce of history http://www.bible.com/
    For everyone else, this is NOT a religious forum. Is it s sports site. Lets stick to sports on here and just pray for people like Nurd83 and Axe Cop. …and GO CATS!!



  44. Redskinboy
    9:26 am August 8, 2011 Permalink

    41)42)This is an excerpt from one of my son’s high school history books… “The first two Presidents of the United States were patrons of religion–George Washington was an Episcopal vestryman, and John Adams described himself as “a church going animal.” Both offered strong rhetorical support for religion. In his Farewell Address of September 1796, Washington called religion, as the source of morality, “a necessary spring of popular government,” while Adams claimed that statesmen “may plan and speculate for Liberty, but it is Religion and Morality alone, which can establish the Principles upon which Freedom can securely stand.””
    So, calm down with the name calling, history (which apparently you know nothing about), and religion. Lets stick to KENTUCKY SPORTS which is something we ALL agree on!!



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