Greedy businessman Paul D. Allen, 52, of Oxford, Mississippi, has been charged with a $1.2 million bank fraud scheme that spanned over six years in Ohio.
A grand jury returned a four-count indictment against Allen, charging him with conspiracy to commit bank fraud and three counts of bank fraud, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment revealed that Allen, a self-proclaimed entrepreneur, moved to the Northern District of Ohio in 1999 and developed a relationship with Stephen Henry, an unindicted co-conspirator from Tennessee.
Between 2003 and 2008, Allen contacted several people in Ohio and recruited them to invest in various business projects he promoted, including B-Telecom Incorporated, a purported data-storage company. Allen promised investors they would receive a percentage ownership in the business in return for the investors obtaining loans from the Oakland Deposit Bank in their own names.
Allen forged borrower signatures on loans for amounts ranging between $42,770 and $168,000 and used the proceeds to pay personal expenses or to make interest payments on existing loans, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation.
The case is being prosecuted by Assistant U.S. Attorney M. Kendra Klump following an investigation by the Federal Bureau of Investigation (Cleveland Division, Painesville Resident Agency) and with the assistance of the Geauga County Prosecutor’s Office.
Allen is currently under indictment and has not yet entered a plea.
Defendant: Paul D. Allen
Criminal Charges: Conspiracy to commit bank fraud, three counts of bank fraud
Location: Oxford, Mississippi, Northern District of Ohio
Crime Date: 2003-2008
Sentence: Pending
Amount: $1.2 million
Related Federal Cases
- Paul D. Allen, Bank Fraud and Conspiracy, Mississippi 2023 · Tennessee
- Robert J. Berryhill, Mail Fraud, Wire Fraud, Aggravated Identity Theft, False Personation, Ohio 2023 · Washington
- Jaime Walsh, Bank Fraud, Tennessee 2024 · Virginia
- Kristen Morrison, Wire Fraud and Aggravated Identity Theft, Tennessee 2016 · Tennessee
- Lashell Patton, Wire Fraud Conspiracy, Tennessee 2023 · Washington
Key Facts
- State: Ohio
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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