Ex-NFL Player Gets 2.5 Years for $5 Million ‘African Goldmine’ Ponzi Scheme

Posted on: March 12, 2025, 11:10h. 

Last updated on: March 12, 2025, 12:48h.

Philip Conneller @casinoorgphilc Read More
Expertise: Gaming Business, Regulation, Tribal Gaming.
  • Former NFL linebacker John Leake sentenced to 2.5 years in prison for a $5 million Ponzi scheme 
  •  Solicited more than $8 million from victims, using funds for gambling and personal expenses 
  • Pleaded guilty to wire fraud and money laundering, and was ordered to pay $5.3 million in restitution

Former Atlanta Falcons and Green Bay Packers linebacker John Leake was sentenced to two and a half years in federal prison this week for gambling away money he promised to invest in goldmines in West Africa.

John Leake, NFL, Ponzo Scheme, Atlanta Falcons, Green Bay Packers
John Leake, a former NFL linebacker, orchestrated a $5 million Ponzi scheme that deceived family and friends. His fraudulent ventures fueled a gambling addiction, according to his lawyer. (Image: Yahoo Sports)

Leake, 43, of Plano, Texas, convinced friends and family to invest more than $8 million in his phony moneymaking ventures, more than $5 million of which is lost.

The former NFL star used the money for casino gambling and other personal expenses or to pay back those he had already stolen from. This was in an effort to keep the scam afloat, the hallmark of a Ponzi scheme.

Fabricated Ventures

From June 2015 to March 2020, federal prosecutors said Leake solicited money from six victims. In addition to goldmines, he claimed to be speculating on real estate and subletting luxury properties. He issued fraudulent promissory notes and personally guaranteed returns despite lacking the assets or income to support his claims.

“Leake knew these investment opportunities often were fabricated and non-existent and were devised by Leake to defraud victims and trick them into giving him money,” the DOJ statement said.

Leake duped his victims by lying that he had invested large amounts of his own money in the purported business ventures he promoted. Leake rarely invested his own money into them.”

The defendant pleaded guilty in September to wire fraud and transactional money laundering. Along with handing him a prison sentence on Monday, US District Judge John F. Walter ordered Leake to pay $5,314,059 in restitution to his six victims.

Gambling Addiction

“Mr. Leake committed these crimes based largely on his being a gambling addict and he feels terrible about deceiving his friends to fuel that addiction,” Leake’s attorney, Evan J. Davis told USA Today. “Fortunately, he has turned a corner with his treatment and is on the right path.”

Leake played college football for the Clemson Tigers from 2000 to 2003, winning the Peach Bowl in his final year. In 2004, he was signed by the Tennessee Titans, before moving to the Falcons and later, briefly, the Packers.

Leake isn’t the first ex-NFL star to have orchestrated a Ponzi scheme. In 2015, Will Allen, a former New York Giants, Miami Dolphins, and New England Patriots cornerback was arrested and charged with running a $35 million scam that involved loans to professional athletes.

He pleaded guilty to federal fraud, conspiracy, and money laundering charges and was sentenced to six years in prison, along with an order to pay $16.8 million in restitution.