The jury won’t hear from former Georgia football coach Jim Donnan in his federal trial on fraud charges.
“I have decided not to testify, your honor,” Donnan told U.S. District Judge C. Ashley Royal on Tuesday.
Donnan’s statement came after the judge dismissed jurors for the day, informing them they are to return Wednesday morning to hear one final defense witness and both sides’ closing arguments. The jury is expected to begin deliberations by afternoon.
Ed Tolley, one of Donnan’s attorneys, said he advised his client that he had the right to remain silent and that the jury would be instructed not to hold that against him.
“I have explained to him the pros and cons of testifying, which he has certainly observed over the last seven or eight days,” Tolley said.
Donnan is facing 41 counts of conspiracy, wire fraud, mail fraud, money laundering and security fraud, all related to an alleged scheme in which investors lost almost $23 million in a West Virginia-based company called Global Liquidation Center (GLC). The company filed for bankruptcy protection in 2011, as did Donnan.
GLC investors recruited by Donnan have testified that they were promised large rates of return — typically 30 to 70 percent — for investments that were to have been used to purchase closeout merchandise for re-sale to pre-determined buyers. But prosecutors contend that relatively little merchandise was sold and that GLC operated as a Ponzi scheme in which early investors were paid from the contributions of later investors.
A central theme of the case is how much Donnan, 69, knew about GLC’s operations and when he knew it.
Donnan’s lawyers contend that he believed GLC was a successful business and a great investment that he wanted to share with friends and family members. Some of the people who lost money have said they don’t believe Donnan deliberately deceived them.
GLC was founded by Greg Crabtree, a West Virginia man who originally was indicted along with Donnan. Crabtree decided not to go to trial, agreeing to a negotiated guilty plea to one count of conspiracy to commit fraud in the sale of security. He faces up to five years in prison and is scheduled to be sentenced next month in Athens.
Prosecutors rested their case against Donnan late Tuesday morning after calling witnesses for four-plus days. One of the prosecution’s final witnesses was former FBI agent Ray Kyle, who testified that Donnan had the largest gain from investments in GLC, his son the second largest gain and his son-in-law the third largest gain.
Donnan’s son, Todd Donnan, later testified that after returning money through GLC’s bankruptcy proceedings, he now is a net loser “considerably” from the investments. He said he had no concerns about GLC’s viability until August 2010, when he didn’t receive a payment he was due from the company.
Asked by Tolley why he had no concerns previously, the younger Donnan replied: “I know that my dad loves me and my children more than anything in the world, and he would never put us in harm’s way.”
Tolley said he will call businessman Nelson Bowers as his final witness Wednesday.
Donnan’s attorneys asked the judge Tuesday to dismiss some or all of the 41 counts, but the judge said he’ll let the jury decide all of them.
