Angelo Alleca Mark Morrow, Investment Fraud, California 2022

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Multi-Million Dollar Fraud Scheme Exposed

ATLANTA – Angelo Alleca and Mark Morrow have been arraigned on charges of orchestrating a multi-million dollar investment fraud scheme. The Defendants marketed several funds that were supposed to invest in certain assets/investments, such as hedge funds managed by a professional money manager or mortgage debt.

According to the new indictment, they instead used the money to pay redemptions to earlier investors, to acquire and operate several businesses, and to pay personal expenses.

“These defendants are charged with stealing millions of dollars from unsuspecting investors with false promises,” said U. S. Attorney John Horn. “Their misrepresentations on how funds would be invested serves as a reminder that citizens need to be careful when choosing where to invest their hard earned money.”

The scheme involved several companies, including Summit Wealth Management, a registered investment adviser headquartered in Atlanta, Georgia. Alleca acted as the President and Chief Operating Officer of the company from 2004 until 2012.

During that time, Alleca started several funds and falsely misrepresented that money would be invested in hedge funds and debt securities and managed by professional investment managers. Instead of investing the money as advertised, Alleca allegedly lost a substantial portion of the funds through securities trading.

Morrow served as the administrator of several of the funds. In 2007, Morrow established Detroit Memorial Partners LLC, which sold promissory notes to acquire and manage cemeteries in Michigan. The indictment alleges that between 2007 and 2012, Morrow and Alleca marketed promissory notes in Detroit Memorial Partners to Summit Wealth clients in Atlanta, and throughout the country.

As a result of the Defendants’ fraud schemes, over 300 investors lost over $35 million dollars invested in the Summit Funds and Detroit Memorial Partners LLC. Alleca and Morrow formed Summit Capital Trading, a registered investment advisor and broker dealer in New York and Ohio in 1997.

Angelo Alleca, 46, of Buffalo, New York, and Mark Morrow, 54, of Cincinnati, Ohio, were indicted on December 15, 2015. This case is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Jeffrey Brown.

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