{"id":19631,"date":"2016-01-22T16:20:27","date_gmt":"2016-01-23T00:20:27","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=19631"},"modified":"2016-01-22T17:38:01","modified_gmt":"2016-01-23T01:38:01","slug":"19631-2","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=19631","title":{"rendered":"Former NBA Player Sentenced to Nine Years in Prison for Role in Ponzi Scheme"},"content":{"rendered":"

NEW JERSEY<\/strong><\/span><\/p>\n

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Former NBA Player and CEO of a purported real estate development firm C. Tate George (Photo: The Star Ledger)<\/figcaption><\/figure>\n

A federal judge sentenced former NBA Player and CEO of a purported real estate development firm, \u00a0C. Tate George,<\/strong> to nine years in prison for orchestrating a $2 million investment fraud scheme, according to officials.<\/span><\/p>\n

After a three-week trial before U.S. District Judge Mary L. Cooper <\/strong>in\u00a0September 2013, a jury deliberated for four hours before convicting George, 47, of Newark, New Jersey, of all of four counts of the indictment. <\/span><\/p>\n

Judge Cooper imposed the sentence Thursday.<\/span><\/p>\n

\u201cThose who perpetrate Ponzi schemes shamelessly trade on relationships with those who trust them,\u201d U.S. Attorney Paul Fishman<\/strong> said. \u00a0\u201cIn this case, George relied on his sports stardom to attract unwitting investors. His crimes justified today\u2019s lengthy sentence.\u201d<\/span><\/p>\n

\u201cBy shamelessly cashing in on his celebrity C. Tate George stole $2 million from investors who trusted him as a former NBA athlete,\u201d said Special Agent in Charge Richard M. Frankel for the FBI\u2019s Newark Division.<\/strong>\u00a0 \u201cGeorge used the money to pay other investors in the Ponzi-style scheme and lined his pockets with the rest, funding extensive renovations on his home, paying for his daughter\u2019s sixteenth birthday party and producing a reality video about himself.\u201d<\/span><\/p>\n

According to documents filed in this case and evidence presented at trial:<\/span><\/strong><\/p>\n

George, a former player for the New Jersey Nets<\/strong> and Milwaukee Bucks<\/strong> professional basketball teams, held himself out as the CEO of The George Group.<\/span><\/p>\n

He claimed to have more than $500 million in assets under management.<\/span><\/p>\n

Officials said he pitched prospective investors, including several former professional athletes, to invest with the firm and told them their money would be used to fund The George Group\u2019s purchase and development of real estate development projects, including projects in Connecticut and New Jersey.<\/span><\/p>\n

George represented to some prospective investors that their funds would be held in an attorney trust account and personally guaranteed the return of their investments, with interest.<\/span><\/p>\n

Based on George\u2019s representations, investors invested more than $2 million in The George Group between 2005 and 2011, which he deposited in both the firm\u2019s and his personal bank account. <\/span><\/p>\n

Instead of using investments to fund real estate development projects as promised, George used the money from new investors to pay existing investors in Ponzi-scheme fashion.<\/span><\/p>\n

He also paid his daughter\u2019s sixteenth birthday party, extensive renovations on his New Jersey home (that has since been foreclosed), the mortgage on a New Jersey home, the mortgage on a Florida home, taxes to the Internal Revenue Service and traffic tickets. \u00a0<\/span><\/p>\n

The defendant gave money to family members and friends. \u00a0He also spent $2,905 for a reality video about himself \u2013 a \u201csizzle reel\u201d for \u201cThe Tate Show\u201d \u2013 which was made available on YouTube.<\/span><\/p>\n

The George Group had virtually no income-generating operations.<\/span><\/p>\n

During the sentencing proceeding, prosecutors asserted George had presented the court with fraudulent character witness letters. \u00a0<\/span><\/p>\n

The defendant claimed the letters, which contained suspicious similarities, were sent to the court in support of a more lenient sentence, officials said.<\/span><\/p>\n

\u00a0Some of the individuals who purportedly sent the letters signed declarations stating that they did not write the letters nor did they authorize the letters to be sent to the court on their behalf, according to officials.<\/span><\/p>\n

In addition to prison time, Judge Cooper ordered George to pay $2.55 million in restitution and entered a forfeiture money judgment of $2.55 million.<\/span><\/p>\n

\u00a0<\/span><\/strong>
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