One former player invested $800,000 in the company.
"Your daddy is going to take care of you," Donnan told the player, according to the SEC. "If you weren't my son, I wouldn't be doing this for you."
He also told potential investors that other high-profile football coaches had profited from the company. Texas State football coach Dennis Franchione; Virginia Tech football coach Frank Beamer; ex-Dallas Cowboys coach Barry Switzer and Texas Tech football coach Tommy Tuberville were among those investing in the company, according to The Associated Press.
A lawyer for Donnan did not immediately respond to a request for comment.