Former NBA Player Tate George Sentenced For Ponzi Scheme

Tate George, former NBA basketball player and the CEO of purported real estate development firm The George Group, was sentenced to 108 months in prison on Thursday for his role in orchestrating a $2 million investment fraud scheme, authorities announced.

According to the U.S. Attorney’s Office (NJ), George, 47, of Newark, a former player for the New Jersey Nets and Milwaukee Bucks – and allegedly the CEO of West Orange-based real estate firm The George Group - claimed to have more than $500 million in assets under management at the onset of his scam.

Using these purported assets, George convinced prospective investors - including several former professional athletes - to invest with his firm, authorities stated.

George allegedly told them their money would be used to fund The George Group’s purchase and development of real estate development projects, including projects in Connecticut and New Jersey.

In addition, George told some prospective investors that their funds would be held in an attorney trust account and personally guaranteed the return of their investments with interest, authorities stated.

Based on George’s representations, investors pumped more than $2 million into The George Group’s coffers between 2005 and 2011, which George deposited in both the firm’s and his personal bank account.

However, instead of using investments to fund real estate development projects as promised, George used the money from new investors to pay existing investors in Ponzi-scheme fashion.

In addition, George reportedly used the money to pay for his daughter’s sixteenth birthday party, extensive renovations on his New Jersey home, the mortgage on additional homes in New Jersey and Florida, taxes to the IRS, traffic tickets and gifts for family and friends.

George also spent $2905 for a reality video about himself - a “sizzle reel” for “The Tate Show” - which was made available on YouTube, authorities stated.

In addition to prison time, George was sentenced to three years of supervised release, ordered to pay $2.55 million in restitution and assigned a forfeiture money judgment of $2.55 million.