Atlanta Investment Advisor Sentenced to Over Seven Years for $9 Million Fraud Scheme
Craig Allen, 53, the executive officer of C.M. Allen Capital Management, Inc., has been sentenced to seven years and two months in federal prison for operating an investment scheme involving the private fund “Cheetah Fund,” which defrauded investors of over $9 million.
According to Acting U.S. Attorney Richard S. Moultrie, Jr., Allen misled investors by sending falsified account documents that inflated the fund’s performance. “Allen abused the investors’ trust by failing to invest their money as promised and diverting these funds to maintain his lifestyle. For some victims, these stolen funds comprised their life savings,” Moultrie said.
The Cheetah Fund, which Allen managed, falsely reported annual investment returns as high as 73% on tear sheets provided to prospective investors. Monthly account statements and tax documents issued to investors also showed fraudulent gains, despite the fund experiencing consistent losses. Additionally, Allen diverted funds for personal use, further depleting investors’ accounts.
Sean Burke, Acting Special Agent in Charge of FBI Atlanta, emphasized the devastating impact of such crimes: “The FBI is hopeful that Allen’s sentencing will send a strong message to anyone who would try to take advantage of unsuspecting investors for their own personal greed.”
Allen was sentenced by U.S. District Judge Thomas W. Thrash, Jr. to seven years, two months in prison, followed by three years of supervised release. He has been ordered to pay $9.2 million in restitution to the victims of the scheme.
The Federal Bureau of Investigation led the investigation, with assistance from the U.S. Securities and Exchange Commission (SEC). The SEC has filed a separate civil case against Allen, identified as SEC v. Craig Allen, Case Number 1:24-cv-01771-SDG.
