BTG Investigates Georgia State Legislator’s $23 Million Ponzi Scheme
Morgan & Morgan’s securities attorneys are investigating an alleged $23 million Ponzi scheme involving former Georgia state legislator Clarence Dean Alford. The SEC has charged Alford with defrauding about 100 investors in Allied Energy Services LLC, his energy development company that today is bankrupt.
The SEC alleges that Alford raised $23 million from investors by selling promissory notes that he fraudulently guaranteed would generate high returns. The SEC alleges that Alford misrepresented Allied as a thriving business, when in fact it wasn’t. The SEC further claims that Alford misrepresented that investor moneys would finance energy projects. Instead, the SEC alleges that Alford used most of the moneys to pay prior investors. The SEC also alleges that Alford used investor funds to build a home costing several million dollars.
The SEC claims that the scheme unraveled in 2019, as Alford could not make principal and interest payments to several investors.
The SEC alleges that Alford targeted mostly Indian-American professionals with his scheme.
Justin Jeffries, Associate Regional Director for the SEC’s Atlanta Regional Office, stated: “As alleged in our complaint, Alford was a prominent member of the community who misled retail investors for personal gain. Investors should be wary whenever they are promised guaranteed, lucrative investment opportunities.”
Alford has agreed to enter into a consent judgment finding that he violated federal securities laws’ anti-fraud provisions. Alford further agreed that the court may determine the amounts of penalties, disgorgement, and interest he will be required to pay at a future date after the SEC files an appropriate motion.
If you have suffered losses relating to Alford’s alleged fraud involving Allied, we are here to help. Contact us at (888) 874-9075 today to speak with an experienced securities attorney at Morgan & Morgan’s Business Trial Group.
The Business Trial Group at Morgan & Morgan helps investors recover their losses on a contingency basis. We are only paid if we successfully recover money for you. We have helped investors recover tens of millions of dollars of investment losses.
The Business Trial Group is part of the largest contingency law firm in the nation, with over 700 lawyers and offices across the country.