Man used Miami company, supposed HBCU charity in multi-million dollar investment scam, feds say

MIAMI – A antheral appeared successful Miami national tribunal connected wealth laundering and ligament fraud charges Tuesday aft prosecutors said helium ran a multi-year, multi-victim, multi-million dollar concern fraud scheme.

Court records amusement the lawsuit against Patrick Lee Allen, aged 45 oregon 46, is being prosecuted successful the Southern District of New York. Authorities said 1 of the victims lives successful the Bronx.

He spent unfortunate funds connected idiosyncratic expenses, similar a backstage pitchy subscription work and sports tickets, authorities allege. They said helium ran the scam from “at least” 2021 up until this month.

Prosecuting documents don’t database Allen’s spot of residence, but 1 of the companies officials said helium utilized arsenic portion of the strategy was registered successful South Florida.

According to a national transgression complaint, Allen’s “first tranche” of victims ― astatine slightest 9 ― invested astir $2.4 cardinal to beryllium traded done a institution called “Compass Fuel & Oil, Inc.”

State concern records amusement that Compass, inactive arsenic of Wednesday, was listed arsenic having a main code astatine a downtown Miami bureau operation and a mailing code astatine a UPS Store successful Hallandale Beach.

Second and 3rd tranches of victims invested much money, prosecutors allege. They said helium utilized further companies called “AEA HBCU Fund” and “One Leaf LP” arsenic portion of the scheme.

They said Allen promised 1 unfortunate a much than $55 cardinal instrumentality implicit 12 months connected a $1 cardinal investment.

After a “personal friend” endorsed Allen, the Bronx unfortunate invested $400,000 aft receiving a $1.4 cardinal ineligible settlement, prosecutors said. They said helium promised the unfortunate that the wealth would beryllium going to assistance students astatine historically Black colleges and universities.

Prosecutors said “a tiny proportion” did spell to HBCUs, but Allen spent astir of it connected idiosyncratic expenses similar “cash withdrawals, jewelry, food, and travel.”

The unfortunate “received nary profits,” they said.

Court documents amusement that pursuing his arrest, U.S. Magistrate Judge Lissette Reid gave Allen a $100,000 idiosyncratic surety enslaved and ordered helium beryllium held connected location detention.

He volition beryllium allowed to question betwixt South Florida and New York for tribunal appearances, those documents state.

He was besides ordered to surrender his passport.

Read the complaint:

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