Biography & Early Wealth Journey

Photo by NFL via Getty Images

Photo by NFL via Getty Images

Not only that, the duo used some of the investors' funds to cover their own personal charges at casinos and nightclubs, and to finance other business ventures, according to the SEC. As an investor, it's got to be very reassuring to see your money being bet at a blackjack table.

Capital Financial's website states that many athletes have contracts that don't grant them guaranteed money during the off-season, or early in the season. Because they may need a significant amount of money to buy a car, house, or even just pay the bills, Capital Financial could provide them a loan by pooling the resources of a network of investors. And those investors, CFP hinted, would reap very solid short-term returns on their investments, indicating that as much as 18% interest could be earned.

Primary Income Streams & Multi-Million Contracts

The SEC is saying those promises were false, though, and has won an asset freeze against the firms. Now, they're seeking an injunction against Allen, Daub and the firms, plus penalties and restitution of allegedly ill-gotten gains.

It's not clear how much money actually went to other NFL players, but the SEC asserts that it's a minimal percentage of the $31 million. There are countless tales of athletes not being careful with their money, but this is a good reminder it can happen to anyone.