David Salinas Ponzi Scheme Wasn't Only Bad Billy Gillispie Investment

Texas Tech basketball coach Billy Gillispie invested $2.3 million in David Salinas' Ponzi scheme and now it appears that he was involved in a second one. According to legal documents obtained by Sports by Brooks, Gillispie invested $3 million in a Ponzi scheme set up by former Georgia Bulldogs coach Jim Donnan. Donnan's Global Liquidation (GLC) Ltd. filed for bankruptcy, claiming that the coach's fraudulent actions led to the business' demise.

Gillispie split his $3 million investment into separate ones of $1 and $2 to the GLC. Under the terms of the investments, Gillispie was promised 60 and 65 percent interest rates on his annual return. Donnan would find new loans to help cover these high interest rates, but eventually he failed to find new investors.

According to other documents, it appears that current Texas State head coach Dennis Franchione helped recruit Gillispie into investing in GLC, as he received commission fees for this. These documents, handwritten by Donnan, also indicate that several college coaches, ex-NFL players and ESPN analysts invested in this scheme.

For more on the Salinas story, keep track of this StoryStream.