Former Georgia legislator ordered to pay over $10m for financial fraud

Rick Steves

The SEC found that Mr. Alford actually used the investor funds to pay personal expenses, including construction costs associated with a multi-million dollar home, and to make interest payments to earlier investors in order to keep the Ponzi scheme running.

Former Georgia state legislator Clarence Dean Alford has been ordered to disgorge ill-gotten gains of $8,849,653 with prejudgment interest of $1,751,085 and to pay a civil penalty of $192,768.

The United States District Court for the Northern District of Georgia imposed restitution, interest, and penalties, based on a complaint filed by the SEC.

The former legislator has also been banned from participating in the issuance, purchase, offer, or sale of any security listed on a national securities exchange, except purchases or sales of securities in personal accounts.

The SEC alleged that from 2017 to 2019, Mr. Alford, who was the CEO, President, and co-managing member of Allied Energy Services, LLC, fraudulently induced at least 100 investors to invest at least $23 million in unregistered, high-yield promissory notes purportedly issued by Allied.

According to the complaint, investors were lied to regarding Allied’s financial condition, who falsely claimed had millions in assets and revenues from 2016 through 2018, even though it had less than $1 million in assets and far less in “gross receipts.”

The former Georgia legislator also falsely told potential investors that Allied would use their funds for various projects, including to support a purported solar energy program, having falsely claimed it established partnerships with several international solar companies.

The SEC found that Mr. Alford actually used the investor funds to pay personal expenses, including construction costs associated with a multi-million dollar home, and to make interest payments to earlier investors in order to keep the Ponzi scheme running.

Yesterday, another court case involving a Ponzi scheme came to an end. Douglas Lien misappropriated client money intended for futures trading and issued false account statements to conceal his fraud, the CFTC found.

The U.S. District Court for the District of New Mexico has ordered Mr. Lien to pay more than $10.3 million in monetary sanctions and relief for a futures trading fraud that lasted nearly 20 years.

the order requires the restitution of $5,195,679 and a civil penalty of $5,195,679. The CFTC warned victims that they might never see their money again.

Mr. Lien admitted that from August 2000 until December 2019, he solicited more than $14.2 million from 45 individuals to manage their trading in commodity futures, specifically U.S. Treasury Bond futures.

Operating a classic Ponzi scheme, he used client money to pay for the false trading profits he declared and kept more than $3.5 million for so-called “management fees”.

Read this next

blockdag

BlockDAG’s Impressive 30,000x ROI Potential and Moon-Based Keynote Captivate Solana And Bitcoin Cash Crypto Investors

Discover BlockDAG’s impressive moon keynote launch and its promise of a 30,000x ROI that is drawing investors from Solana and Bitcoin Cash.

Market News

This is it, the USD Strength has Come to an End

In the aftermath of Israel’s retaliatory strikes in Iran, the currency markets have entered a phase of heightened volatility, reflecting the intricate interplay between geopolitical tensions and economic fundamentals.

blockdag

BlockDAG Leads DeFi Innovation with $19M Presale, Overshadowing Cardano and Binance Coin With 30,000x ROI and DAG Structure

Learn about BlockDAG’s growth in its presale, surpassing $19M, and its impact on the DeFi landscape, overshadowing movements in Cardano and Binance Coin (BNB).

blockdag

BlockDAG Offering a Fresh Take on Meme Coin Development Amid Solana’s Challenges and Floki Inu’s Price Fluctuations With 30,000x ROI

Dive into how BlockDAG’s innovative presale, low-code platforms, and potential 30,000x ROI, outperform Solana’s technical hurdles and Floki Inu’s market predictions.

blockdag

BlockDAG Excels With $2.2M In Miner Sales And Moonshot Teaser, Overshadowing Litecoin’s Rally And Dogwifhat’s Market Highs

Explore how BlockDAG’s $2 million Miner Sales & Moonshot Teaser eclipse the Litecoin price recovery and the Dogwifhat all-time high.

blockdag

BlockDAG Leads Top 6 Cryptocurrencies to Buy in 2024 with a Potential Price Surge to $10 Leaving Cosmos, BNB, and Ethereum Behind

Discover the top six cryptocurrencies in 2024, including BDAG’s remarkable growth potential, BNB’s durability, Cosmos’ connectivity, and ETH’s eco-friendly advances.

Retail FX

Weekly Roundup: Prop firm arbitrarily accounts, Interactive Brokers’ CFDs in Japan

FX, Fintech and cryptocurrency markets have been bustling with activity over the past week, as is often the case. Keep yourself informed and ahead of the curve with a curated selection of crucial stories and developments that are most relevant to those engaged in the markets.

blockdag

BlockDAG Redefines Crypto Mining as Presale Tops $18.5M, Outshining Ethereum ETF & Dogecoin Dynamics

The recent approval of the first Ethereum ETF in Hong Kong underscores a significant advancement in the cryptocurrency’s mainstream acceptance. While Ethereum continues to attract institutional attention, the Dogecoin price prediction suggests a possible resurgence, despite its current undervaluation from past highs.

Digital Assets

Bitcoin halving is done: ViaBTC mines historic block 840K

The Bitcoin network has confirmed its fourth-ever halving block, mined by the cryptocurrency pool ViaBTC, according to data from Blockchain.com. This significant event in the Bitcoin ecosystem reduced the mining reward by half, a deflationary measure occurring approximately every four years to control the issuance of new bitcoins and curb inflation.

<