Paul D. Allen, Bank Fraud Scheme, MS, 2023

Former Ohio resident and self-proclaimed entrepreneur Paul D. Allen, 52, of Oxford, Mississippi, has been indicted by a federal grand jury on four counts, including conspiracy to commit bank fraud and three counts of actual bank fraud.

The charges stem from an elaborate scheme in which Allen is accused of defrauding the Oakland Deposit Bank out of $1.2 million. The indictment alleges that Allen, along with unindicted co-conspirator Stephen Henry, president of the bank, executed a fraudulent plan involving false and misleading representations to the bank.

Allen, who moved to Ohio in 1999 after living in Tennessee, recruited investors from Ohio for various business projects he promoted. He promised them ownership stakes in exchange for securing loans from the Oakland Deposit Bank in their names. The funds were supposed to be used for business operations, but instead, Allen is said to have used the proceeds for personal expenses and interest payments on other loans.

Between 2003 and 2008, Allen is accused of forging borrower signatures on loans ranging from $42,770 to $168,000. He also took out additional loans without borrowers’ knowledge, using the money to pay himself and keep the scheme going. If convicted, Allen faces a sentence determined by the court after considering factors such as his prior criminal record and role in the offense.

The case is being prosecuted by Assistant U.S. Attorney M. Kendra Klump, who is leading the investigation along with the Federal Bureau of Investigation’s Cleveland Division and the Geauga County Prosecutor’s Office.

It’s important to note that an indictment is merely a charge, and Allen is entitled to a fair trial where the government must prove his guilt beyond a reasonable doubt.