Hedge Fund Manager in Georgia Charged With Securities Fraud—Allegedly Falsely Linked NFL Quarterback to Investment Fund
On April 24th, 2024, the Securities and Exchange Commission (SEC) confirmed that Craig Allen—an Atlanta, Georgia based hedge fund manager—is being charged as a part of a multi-million dollar securities fraud case. Investors in several states, including Florida, were affected. Mr. Allen operated The Cheetah Fund L.P. and he falsely touted his fund as linked to an NFL quarterback to entice unsuspecting investors. Here, our Miami investor losses attorney provides an overview of the SEC’s complaint.
Securities Fraud Charges: False Claims About Investment Returns
In a legal complaint filed in the United States District Court for the Northern District of Georgia, the SEC has charged hedge fund manager Craig Allen with defrauding investors out of approximately $9.9 million. Affected investors were primarily located in the Southeastern U.S., including in Florida.
Mr. Allen owned and operated The Cheetah Fund L.P. The SEC complaint contends that while Mr. Allen promoted his investment fund as having “stellar” returns, the reality was quite the opposite. He falsely concealed more than $4.5 million in investment losses. In doing so, Mr. Allen allegedly was able to extract nearly $2.65 million in unearned compensation.
Notably, the SEC contends that as of April of 2024, only around $900,000 from the Cheetah Fund L.P. has been returned to investors. As stated previously, the SEC believes the fund took in another $9 million.
Hedge Fund Manager Used False Connection to NFL Star to Entice Investors
Craigh Allen exploited a fabricated association with a renowned NFL star to attract investors. Mr. Allen reportedly indicated to actual and prospective investors that an Atlanta Falcons quarterback was a major investor in The Cheetah Fund L.P. In reality, that star football player had no connection to the investment fund at all. The deceit played a critical role in securing trust and capital from investors. Those investors put additional credibility in the fund because they believed their investments were aligned with the success of a star sports figure.
SEC is Seeking All Appropriate Remedies
As part of its enforcement action, the SEC is seeking all appropriate legal remedies. To start, the federal agency is seeking findings by the court that Craig Allen violated the Securities Act of 1933, the Securities Exchange Act of 1934, and the Investment Advisers Act of 1940. Beyond that, the SEC is seeking the following sanctions against Mr. Allen:
- A permanent injunction;
- Civil financial penalties;
- Disgorgement of gains;
- Payment of restitution;
- An officer/director bar; and
- A ban on selling securities outside of personal accounts.
Get Help From Our Miami Hedge Fund Fraud Attorney Today
At Carlson & Associates, P.A., we are an investor rights law firm that is committed to helping people recover full and fair financial compensation for their damages. If you have any questions or concerns about filing an investment fraud claim, please do not hesitate to contact our law firm today. With an office in Miami, we fight for investors throughout Florida.
Source:
sec.gov/litigation/litreleases/lr-25984