Jim Donnan and family members gained more than $5 million from a West Virginia company prosecutors have described as a Ponzi scheme, a former FBI agent testified in the former University of Georgia football coach’s fraud trial Wednesday.
But other investors lost more than $20 million, according to testimony as federal prosecutors introduced hundreds of pages of bank records and other documents in the second day of the trial.
Donnan invested about $4.8 million and got $13.2 million back for a gain of more than $8.4 million, testified Ray Kyle, now a contract worker for the FBI.
Donnan’s son got a return of about $620,000 on an investment of $82,000, Kyle testified, while Donnan’s son-in-law got back about $673,000 from a $188,500 investment.
The FBI worker, who holds an accounting degree from the University of Alabama, was the second witness to testify as the prosecution opened its case in Donnan’s trial. Donnan is charged with multiple counts of fraud and money laundering stemming from his involvement in the company GLC Ltd.
Donnan, now in bankruptcy, maintains that he as well as other investors were victims of his partner in GLC, Greg Crabtree.
Crabtree has already pleaded guilty to a single count in the case. He has not been sentenced and is expected to testify against Donnan.
Assistant U.S. Attorney Paul McCommon said at a noon break he expected his next witness to be Dan Shoemaker, who introduced Donnan to Crabtree.