Kendrell Bell, former University and professional football player, says Jim Donnan allegedly deceived him into investing $2 million into a Ponzi scheme.

Bell played for Donnan, former University football coach, from 1999 to 2000. Bell also played for the Pittsburgh Steelers and the Kansas City Chiefs but retired in 2007 due to injuries.

Donnan convinced Bell to invest $2 million into GLC Limited, a West Virginia company that purchased distressed furniture and appliances and sold them for profit, according to documents obtained by The Red & Black.

Former University coach Jim Donnan was on the sidelines of Sanford from 1999 to 2000. Donnan allegedly convinced a former player of joining a Ponzi scheme. FILE/The Red & Black

“As a result of the unique dynamics of the player-coach relationship, Jim Donnan became both a mentor and father figure to [Bell], and [Bell] always strived to be in Jim Donnan’s good graces,” according to legal documents filed by Bell’s attorneys. “[Bell] completely trusted everything his coach said to him.”

Bell’s proposed investment in GLC would be used for purchasing furniture and appliances, and Donnan constantly assured Bell his investment was safe through text messages and phone calls, according to the documents.

“[Bell] remained in awe of Jim Donnan and was honored that his coach thought highly enough of him to invite him to become one of the few investors in GLC,” according to Bell’s lawyers’ statement in the documents. “[Bell] never thought that his coach might be perpetrating a scam.”

After being assured by Donnan, Bell wired $1 million to GLC Limited on Sept. 2, 2009, and, after further requests and assurance from Donnan, Bell wired another million to GLC on March 31, 2010.

Michael Hanson and Brian Dwitt, Bell’s lawyers, declined to comment on the case.

GLC received more than $82 million in investments, approximately 80 percent of which would go to repaying early investors.

Donnan was one of the earliest investors. He invested more than $5.4 million in GLC and received transfers from GLC for more than $14.5 million, according to documents obtained by The Red & Black from Bell’s lawyers.

The same documents said Donnan received more than $9 million above what he originally invested.

GLC filed for bankruptcy on Feb. 28, 2011 in an Ohio court, and Donnan filed for personal bankruptcy on July 1, 2011.

After both filed a case for bankruptcy, Donnan continued to assure Bell of his investment and told him not to talk to reporters or lawyers. Bell followed Donnan’s advice and did not take action to protect himself until October, when he filed a proof of claim in Donnan’s bankruptcy case, according to documents from Bell’s lawyers.

Bell’s proof of claim was filed before the deadline on Oct. 31, 2011, but he had missed the deadline for filing to object to discharge — which means despite the events Bell still wants the debt repaid. Bell filed a motion to extend the time to file an adversary complaint in December 2011.

A hearing was held Tuesday, Jan. 24, to decide whether Bell’s late claim against Donnan could be added to the case.

Donnan’s lawyer, Ernest Harris, said Bell was two months late and is raising equitability issues that do not apply — because he had knowledge of everything.

The court has not reached a decision on Bell’s motion for extension. If the court does not grant Bell’s extension, then Bell will not be able to recoup any of his $2 million in the case.

Bell’s action in the Donnan case represents one of many investors from GLC that have filed in Donnan’s bankruptcy case, including many other famous names in football.

Jonas Jennings, another former University football player who played for Donnan and former NFL player, is among them. Jennings, however, filed an adversary complaint in September 2011 before the deadline.

Harris said the claims on Donnan’s assets were originally objected to but are going to be allowed if they are reduced to the amount of the individual’s net losses.

On March 20, disclosure statements will be presented in court on both the Donnan Plan and GLC Plan for distributing the assets to Donnan’s creditors.

The plans will then be sent to creditors in the Donnan case, and they will hold a vote to decide which plan will be used to distribute Donnan’s assets, which will then be liquidated and distributed to GLC investors that have been able to claim money in the case.