An Atlanta-based financier faces serious allegations of embezzlement, according to a U.S. Securities and Exchange Commission (SEC) civil suit filed on Wednesday. The financier is accused of siphoning millions from investors of his nearly $10 million hedge fund, the Cheetah Fund, which he mismanaged to his personal benefit.
Georgia Fund Manager Millions Embezzlement : Multimillion-Dollar Fraud Allegations
Craig Allen, the Georgia fund manager at the center of this controversy, reportedly used the Cheetah Fund to fraudulently raise $9.9 million. According to the SEC, Allen paid himself over $2.6 million in supposed performance-based compensation despite the fund’s failure. The complaint details how Allen lavishly spent the stolen funds on private school tuition, international travel, and extravagant gifts for family members.
Georgia Fund Manager Millions Embezzlement : The Scheme’s Unraveling
As the fund depleted its resources, Allen’s deceit reached a peak when he misled investors about entering a rehabilitation program while he actually fled the country. The SEC highlights that Allen, from at least 2019, conducted a multimillion-dollar fraud, consistently lying to the fund’s investors about its financial health.
Legal Repercussions and Investor Deception
In 2023, Allen attempted to block the SEC’s demand for financial records, claiming the Cheetah Fund was not a registered security and thus outside the SEC’s jurisdiction. However, this effort was futile and dismissed before the SEC’s recent lawsuit. As his fraudulent activities came to light, Allen confessed in text messages to investors, admitting there was no remaining money and indicating severe personal consequences if authorities were involved.
Georgia Fund Manager Millions Embezzlement : Forged Performance and False Claims
The complaint further accuses Allen of fabricating past performance data of the Cheetah Fund, founded in 2007, with forged reports showing unreal annual growth. He falsely claimed oversight by a renowned accounting firm and touted a former NFL player as an investor to bolster his credibility.
Conclusion and Current Situation
Despite only repaying approximately $900,000 of the $9.9 million raised, Allen’s current whereabouts remain unknown, with no contact information available. The SEC continues to pursue justice for defrauded investors, represented by M. Graham Loomis, William P. Hicks, and Joshua Cole Hess.
