Former UConn Great Tate George Arrested For Ponzi Scheme
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Former University of Connecticut basketball star Tate George faces federal real estate fraud charges in what authorities say was a classic “Ponzi Scheme.” George, famed for the 1990 “Dream Shot” with one second left, which gave UConn the win over Clemson in the 1990 East Regional Sweet 16 in the NCAA Tournament, was the first UConn player ever chosen in the first round of the NBA draft, by the New Jersey Nets.
U.S.Attorney for New Jersey Paul Fishman says George, chief executive officer ot The George Group, claimed to manage half a billion dollars in assets, and convinced prospective investors, including former professional athletes, that their money would be used to buy real estate projects in Connecticut, Florida, Illinois and New Jersey,.
The criminal complaint says, in reality, The George Group had virtually no income-generating operations. Instead, he used more than $2 million from new investors to pay other investors, It charges he also put some of the money in his personal account and used it for home improvement projects, meals at restaurants, clothing and gasoline.
If convicted, he could face a maximum sentence of 20 years in prison and a quarter million dollar fine.
George, who is 43 and now lives in Newark, surrendered to FBI agents and postal inspectors in Newark,