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 his involvement in a fraudulent investment scheme. The scheme, which centered around a private fund known as "the Cheetah Fund," defrauded investors of over $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 further explained that Allen misused investor funds for personal expenses instead of investing them as promised, affecting some victims' life savings.
Sean Burke, Acting Special Agent in Charge of FBI Atlanta, emphasized the impact of financial fraud on victims: "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 similar fraudulent activities.
The court was informed that Allen managed the Cheetah Fund through his role at C.M. Allen Capital Management and provided prospective investors with misleading information about the fund's performance. Investors received false monthly statements and tax documents indicating gains while the fund was actually losing money. Additionally, Allen used investor funds for personal gain.
Allen was sentenced by U.S. District Judge Thomas W. Thrash, Jr., receiving seven years and two months in prison followed by three years of supervised release. He is also required to pay $9.2 million in restitution to the victims.
The Federal Bureau of Investigation led the investigation into this case with assistance from the SEC, which 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 the case.
For more information, contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.
