A former NFL linebacker was sentenced in Los Angeles on Monday for running a Ponzi Scheme that defrauded his victims of $5.3 million – some of which he used to cover gambling expenses.
The Department of Justice sentenced John Robert Leake, 43, of Plano, Texas, who formerly resided in Marina del Rey, to two and a half years in federal prison.
Leake, who played for the Green Bay Packers and the Atlanta Falcons from 2005-07, ultimately received about $8,129,450 from six victims during the Ponzi Scheme – causing them a total loss of $5,314,059, according to the DOJ.
The DOJ’s release said Leake ran the scheme from June 2015 to March 2020.
Leake falsely claimed to his victims that he was involved in lucrative real estate investments – such as subletting luxury properties – as well as other ventures including gold mines in Alaska and Ghana.
The former linebacker then offered his victims the opportunity to loan him funds for him to invest in these ventures – promising them high rates of return in exchange.
“In fact, 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 said in a release.
Leake also deceptively told his victims that he had invested large amounts of his own money in the purported ventures.
“Leake’s lies to his victims included his claims that his business ventures were successful, and he had accumulated substantial personal assets and income,” said the DOJ. “In fact, Leake lacked sufficient personal assets and income to repay his victims.”
Once he had the victims’ money, the DOJ said Leake would nonconsensually use some of the funds for personal use, including paying off credit card bills, car payments, rent and gambling expenses.
Leake also used some of the victims’ money to continue the scam and lull victims by making purported “interest” and “capital” payments on promissory notes. The DOJ noted he used a small amount of his own funds to make these payments.
The DOJ said Leake pleaded guilty in September 2024 to one count of wire fraud and one count of transactional money laundering.