A former NBA player best known for his 1990 tournament buzzer-beater for the University of Connecticut was convicted on Monday of four counts of federal wire fraud in a Ponzi scheme that netted him US$2 million.
Authorities said Tate George carried out a profitable scheme that lined his pockets from 2005 to early 2011, even though his purported real estate development firm - The George Group - had virtually no income-generating operation.
Prosecutors say he used money from new investors to pay previous investors or for home improvements and personal expenses, including his daughter’s Sweet 16 birthday party. George also gave money to family members and friends and spent nearly US$3,000 to promote a Tate George “reality show” that is still available on YouTube.
A federal jury in Trenton, New Jersey returned the verdict after a three-week trial. Prosecutors say George’s bail was immediately revoked, and his sentencing was scheduled for January 16.
“The defendant has an incentive to run,” Joseph Shumofsky, the lead federal prosecutor, told the judge. “If your honour lets him walk out of the courthouse today, there is more than a good chance that we will never see him again.”
Each count of wire fraud carries a penalty of up to 20 years in prison and a US$250,000 fine.
