The S.E.C. said in a statement today that Donnan worked with an Ohio man to conduct an $80 million Ponzi scheme. The agency said other college coaches and former players lost millions of dollars in the scheme.
Federal regulators say Donnan orchestrated the fraud with his business partner through West Virginia-based GLC Limited.
Donnan led teams at Marshall University and the University of Georgia and later became a television commentator.
William P. Hicks, associate director of the SEC’s Atlanta office, says Donnan and his partner convinced investors to pour millions of dollars into a business they said was unique and profitable with huge potential and little risk.