Investment professional sentenced to prison for multimillion-dollar fraud scheme

Ryan K. Buchanan, U.S. Attorney | U.S. Attorney for the Northern District of Georgia

Craig Allen, the executive officer of C.M. Allen Capital Management, Inc., has been sentenced to seven years in federal prison for orchestrating an investment scheme that defrauded investors of over $9 million through a private fund known as "the Cheetah Fund."

"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 these funds for personal expenses.

Sean Burke, Acting Special Agent in Charge of FBI Atlanta, remarked on the impact of financial fraud cases: "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." He expressed hope that Allen's sentencing would deter others from exploiting unsuspecting investors.

Court records indicate that Allen was responsible for managing the Cheetah Fund's investment portfolio. Prospective investors were provided with tear sheets claiming annual returns as high as 73%. However, once invested, they received fraudulent statements showing false gains while the fund was actually losing money. Additionally, Allen diverted investor funds for personal use.

Allen, aged 53 and residing in Atlanta, Georgia, was sentenced by U.S. District Judge Thomas W. Thrash Jr. to 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 conducted the investigation with assistance from the 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 more information, contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. More details can be found on the website for the U.S. Attorney’s Office for the Northern District of Georgia at http://www.justice.gov/usao-ndga.