Craig Allen, an executive officer of C.M. Allen Capital Management, Inc., has been sentenced to over seven years in federal prison for his role in a fraudulent investment scheme. The scheme involved the private fund known as "the Cheetah Fund," which deceived numerous investors out of more than $9 million.
"Allen lied to investors when he sent them account documents that intentionally inflated the Cheetah Fund’s performance," stated Acting U.S. Attorney Richard S. Moultrie, Jr. He added that Allen misused the trust of investors by not investing their money as promised and instead used it for personal expenses, impacting some victims' life savings.
Sean Burke, Acting Special Agent in Charge of FBI Atlanta, emphasized the serious impact of financial fraud: "While it is easy to dismiss financial fraud cases as being almost benign because of their lack of violence, there is however a very real victimization felt and lives are changed forever." Burke expressed hope that Allen's sentencing would deter others from exploiting unsuspecting investors.
Court records indicate that Allen was responsible for managing both C.M. Allen Capital Management and the Cheetah Fund's portfolio. Prospective investors were provided with tear sheets claiming annual returns up to 73%. Once invested, they received falsified monthly statements and tax documents indicating non-existent gains while the fund was actually losing money.
Additionally, evidence showed that Allen diverted investor funds for personal use. His fraudulent activities resulted in losses exceeding $9 million for Cheetah investors.
Craig Allen, aged 53 from Atlanta, Georgia, received a sentence from U.S. District Judge Thomas W. Thrash Jr., consisting of seven years and two months in prison followed by three years of supervised release. He must also pay $9.2 million in restitution to his victims.
The Federal Bureau of Investigation led the investigation with assistance from the Securities and Exchange Commission (SEC). The SEC has filed a separate civil case against Craig Allen under Case Number 1:24-cv-01771-SDG.
Assistant U.S. Attorney Natasha Cooper and former Assistant U.S. Attorney Christopher J. Huber prosecuted this case.
For further details or inquiries, contact the U.S. Attorney’s Public Affairs Office via email at USAGAN.PressEmails@usdoj.gov or call (404) 581-6016. More information can be found on their website at http://www.justice.gov/usao-ndga.