Former NFL Linebacker Sentenced for $5M Ponzi Scheme

A former NFL linebacker was sentenced to 30 months in federal prison for planning a Ponzi scheme that ended up defrauding victims of over $5 million. 

John Robert Leake, a Plano, Texas, resident who previously lived in Marina del Rey, falsely presented himself as involved in profitable ventures, including luxury real estate, gold mining operations in Alaska and Ghana, and other business opportunities, while promising substantial returns to his investors.

U.S. District Judge John F. Walter sentenced the 43-year-old and ordered him to pay $5,314,059 in restitution to the victims. 

In September 2024, Leake pleaded guilty to wire fraud and transactional money laundering.

False Claims About Thriving Business Endeavours

Between June 2015 and March 2020, the man solicited funds from friends and acquaintances, claiming to be involved in high-yield investments. 

He “stole millions of dollars” from them using “bald-faced deception,” as court filings from federal prosecutors read. 

He “lied to those who considered him a friend, convinced them to invest in business opportunities that were largely non-existent, and used their funds to either pay his personal expenses or pay back those he had already stolen from in an effort to keep his scheme afloat,” the documents further say. 

Leake claimed to manage luxury real estate properties, subletting them for profit and engaging in real estate investments. 

He managed to draw in his victims by offering them the opportunity to loan him money for these ventures in exchange for attractive returns.

However, the Department of Justice (DOJ) stated that “Leake knew these investment opportunities often were fabricated and non-existent” and that he devised them with the purpose of defrauding his victims and tricking them into giving him money.

Despite claiming that his business endeavors were thriving, Leake rarely invested his own funds into the ventures he was attempting to sell. 

Instead, he manipulated victims into thinking the deals were legitimate and falsely guaranteed the repayment of their loans via promissory notes at fixed interest rates. 

He Used Stolen Money to Gamble

Once he had access to the money, Leake used a portion of the funds for personal expenses, including paying rent, credit card bills, car payments, and engaging in gambling. 

According to his attorney, Evan J. Davis, Leake committed the crimes “based largely on his being a gambling addict.”

Davis went on to say his client “feels terrible about deceiving his friends to fuel that“ and that he has, since, “turned a corner with his treatment and is on the right path.”

To keep his scheme running, Leake also used some of the money to make fraudulent “interest” and “capital” payments to victims, a move designed to keep them engaged in the scam. 

These payments were made with a minimal amount of Leake’s own money.

In total, the man deceived six victims, fraudulently receiving $8,129,450 and causing a loss of approximately $5,314,059. 

The Turning Point

In a letter to Judge Walter, Leake described the moment his Ponzi scheme collapsed as a turning point, admitting he deceived his victims. 

He checked into a mental health clinic, where he joined support groups for gambling and addiction. 

He also cut ties with bookies, deleted gambling apps, and found help through books like Make Your Bed and Atomic Habits. 

Leake, who played for Clemson University between 2000 and 2003 and was also picked for the 2003 Peach Bowl-winning team, expressed his wish to speak at an addiction conference and actively get involved in work at the clinic following his sentence. 

“It is important to me to start paying back all six victims,” said Tennessee Titans’ former undrafted free agent wrote. 

The case was investigated by the IRS’s criminal investigative arm, IRS Criminal Investigation, with Assistant U.S. Attorney James C. Hughes leading the prosecution.

Last month, we reported on the story of R.L., a pro gambler based in Luton, England, who was sentenced to five years in prison for defrauding close to 200 people with fake cruise holiday offers.