A grand jury in New Jersey has indicted former UConn standout and NBA player Tate George in connection with an alleged multimillion-dollar Ponzi scheme.
George, who made an iconic shot for UConn against Clemson during the Sweet 16 game of the NCAA tournament in 1990 before moving on to play with the New Jersey Nets, Philadelphia 76ers and Milwaukee Bucks, was indicted on four counts of wire fraud. He had previously been charged with one count.
Tate, CEO of The George Group, is accused of taking more than $2 million from prospective investors, and instead of using it for real estate developments as promised, he paid off other investors in a classic Ponzi scheme.
Among the allegations are that George represented to prospective investors that their money would be used to fund The George Group’s purchase and development of real estate development projects, including projects in Florida, Illinois, Connecticut and New Jersey.
George, 43, of Newark, is also accused of pocketing some of the money himself, paying for home improvement projects, clothing, meals and other personal expenses.
The complaint said investors gave his firm more than $2 million between 2005 and early 2011.
"In reality, The George Group had virtually no income-generating operations," prosecutors said in a statement.
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George faces up to 20 years in prison if convicted.
