The Palm Beach Post report cites an indictment issued last week by the U.S. Attorney in Massachusetts.
Allen, 36, was arrested last month and charged with fraud by the Securities and Exchange Commission for allegedly operating the $31 million Ponzi scheme. Working with his accomplice, Susan Daub, Allen formed a company that made high-interest, short-term loans to athletes. The phantom loans were funded by money from investors, but Allen used the capital for various expenses.
The indictment received by the Post details that Allen received $4.1 million of the proceeds and that $61,180 went to casinos where Allen had accounts. Daub, who is accused of committing 20 felonies, received $239,000.
More than 40 people invested money in Allen’s Ponzi scheme dating back to 2012, including Columbus Blue Jackets defender Jack Johnson, who received Allen’s largest loan.
The indictment counts 12 counts of wire fraud, six counts of aggravated identity theft, one count of conspiracy to commit wire fraud and four counts of illegal monetary transactions for Allen. If convicted, Allen faces up to 20 years on each wire fraud charge and shorter sentences for the remaining felonies.
Allen was a first-round pick in 2001 out of Syracuse by the Giants. Over five seasons with the Giants and five with the Dolphins, he recorded 528 tackles, five sacks, 15 interceptions, seven forced fumbles and six fumble recoveries.
- Mike Fiammetta