Craig Allen, the executive officer of C.M. Allen Capital Management, Inc., has been sentenced to over seven years in federal prison for orchestrating an investment fraud scheme involving a private fund known as "the Cheetah Fund." This scheme defrauded 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 to sustain his lifestyle. For some victims, these funds represented their life savings.
Sean Burke, Acting Special Agent in Charge of FBI Atlanta, commented on the broader 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.
The court heard that Allen, who was the sole shareholder and executive officer at C.M. Allen Capital Management, Inc., defrauded numerous investors nationwide through his management of the Cheetah Fund. Investors were misled with tear sheets claiming annual returns up to 73%, followed by fraudulent monthly statements showing false gains and fake tax documents reflecting these gains. In reality, despite reporting profits, the fund was consistently losing money.
Allen also diverted investor funds for personal use by writing checks payable to himself. Overall losses from this fraudulent activity exceeded $9 million.
U.S. District Judge Thomas W. Thrash, Jr., sentenced Craig Allen to seven years and two months in prison with an additional three years under supervised release. Restitution payments amounting to $9.2 million have been ordered for the victims.
The Federal Bureau of Investigation led the investigation into this case with assistance from the SEC, which has its separate civil case against Craig Allen (Case Number 1:24-cv-01771-SDG). Assistant U.S. Attorney Natasha Cooper along with former Assistant U.S. Attorney Christopher J. Huber prosecuted this case.
For more information, contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.