Angelo Alleca Pleads Guilty to Orchestrating a Multi-Million Dollar Fraud Scheme

FraudsWatch.com
Million Dollar Fraud Scheme

<h2>Former CEO of Summit Wealth Management Pleads Guilty to Orchestrating a Multi-Million Dollar Fraud Scheme<&sol;h2>&NewLine;<p>ATLANTA – Angelo Alleca&comma; the former CEO of Atlanta&comma; Georgia&comma; based Summit Wealth Management&comma; has pleaded guilty to <strong>conspiring<&sol;strong> with a former business partner to <strong>defraud<&sol;strong> investors of over &dollar;35 million dollars&period; Alleca marketed several funds that were supposed to invest in certain assets&sol;investments&comma; such as hedge funds managed by a professional money manager or mortgage debt&period;  Instead he used the money to pay redemptions to earlier investors&comma; to acquire and operate several businesses&comma; and to pay personal expenses&period;<&sol;p>&NewLine;<p>&OpenCurlyDoubleQuote;Instead of fulfilling promises of investments&comma; investors were largely swindled out of their money in a <strong>Ponzi scheme<&sol;strong> which directly enriched Alleca&comma;” said U&period;S&period; Attorney John Horn&period;  &OpenCurlyDoubleQuote;This case serves as another reminder that investors need to be careful&comma; and do their research when deciding who to trust with their hard-earned money&period;”<&sol;p>&NewLine;<p>&OpenCurlyDoubleQuote;The guilty plea of Mr&period; Alleca is the culmination of a lengthy and extensive federal investigation examining the allegations of many years of <a href&equals;"https&colon;&sol;&sol;www&period;fraudswatch&period;com&sol;financial-scams-most-common-ways&sol;"><strong>financial fraud<&sol;strong><&sol;a> which victimized so many investors out of millions of dollars&period;  It is the FBI’s hope that today’s guilty plea will provide some sense of relief to those victims that have suffered so much by Mr&period; Alleca’s greed driven criminal conduct&comma;” said J&period; Britt Johnson&comma; Special Agent in Charge&comma; FBI Atlanta Field Office&period;<&sol;p>&NewLine;<p>According to U&period;S&period; Attorney Horn&comma; the indictment&comma; and other information presented in court&colon; From on or about 2004 until 2012&comma;  Alleca acted as the President and Chief Operating Officer of Summit Wealth Management&comma; an investment adviser headquartered in Atlanta&comma; Georgia&period; During that time&comma; Alleca started several funds and falsely misrepresented that money would be invested in hedge funds and debt securities and managed by professional investment managers&period;<&sol;p>&NewLine;<p>Instead of investing the money as advertised&comma; Alleca allegedly lost a substantial portion of the funds through securities trading&period; In addition&comma; Alleca improperly used the funds to operate Summit Wealth Management&comma; make interest payments and redemptions to earlier investors&comma; and to pay personal expenses&period; During the course of the scheme&comma; fraudulent account statements were mailed to investors showing gains&comma; when there was no money in the funds&period;<&sol;p>&NewLine;<p>In 1997 Alleca and Mark Morrow&comma; a co-defendant in the case&comma; and Alleca’s former business partner&comma; formed Summit Capital Trading&comma; a registered investment advisor and broker dealer in New York and Ohio&period;  Alleca led the Buffalo&comma; New York office and Morrow ran the Cincinnati and Cleveland&comma; Ohio offices&period;<&sol;p>&NewLine;<p>In 2007&comma; Morrow established Detroit Memorial Partners LLC&comma; which sold promissory notes to acquire and manage cemeteries in Michigan&period;<&sol;p>&NewLine;<p>Between 2007 and 2012&comma; Morrow and Alleca marketed promissory notes in Detroit Memorial Partners to Summit Wealth clients in Atlanta&comma; and throughout the country&period; Detroit Memorial Partners offered documents which contained material misrepresentations&comma; including that the notes would be secured by real property&period;  In fact&comma; no security interest was ever recorded with respect to the notes&period; Moreover&comma; shortly after receiving the note proceeds&comma; Alleca and Morrow&comma; diverted funds for improper purposes including&comma; making interest payments and redemptions to investors in Summit Wealth Management funds and personal expenses&period;  The indictment alleges that as a result of their <a href&equals;"https&colon;&sol;&sol;www&period;fraudswatch&period;com&sol;most-popular-fraud-schemes&sol;"><em>fraud schemes<&sol;em><&sol;a>&comma; over 300 investors lost over &dollar;35 million dollars invested in the Summit Funds and Detroit Memorial Partners LLC&period;<&sol;p>&NewLine;<p>Sentencing for Angelo Alleca&comma; 46&comma; of Buffalo&comma; New York&comma; is scheduled for August 4&comma; 2016 at 2&colon;00 p&period;m&period;&comma; before United States District Judge Leigh Martin May&period;<&sol;p>&NewLine;<p>This case is being investigated by the Federal Bureau of Investigation&period;<&sol;p>&NewLine;<p>Assistant United States Attorney Jeffrey Brown is prosecuting the case&period;<&sol;p>&NewLine;<p>For further information please contact the U&period;S&period; Attorney’s Public Affairs Office at USAGAN&period;PressEmails&commat;usdoj&period;gov<&sol;p>&NewLine;<div class&equals;"element-invisible">Email links icon<&sol;div>&NewLine;<p>or &lpar;404&rpar; 581-6016&period;  The Internet address for the U&period;S&period; Attorney’s Office for the Northern District of Georgia is <a href&equals;"https&colon;&sol;&sol;www&period;justice&period;gov&sol;usao-ndga">http&colon;&sol;&sol;www&period;justice&period;gov&sol;usao-ndga<&sol;a><&sol;p>&NewLine;<div class&equals;"field&lowbar;&lowbar;item even"><a href&equals;"https&colon;&sol;&sol;www&period;justice&period;gov&sol;usao-ndga&sol;pr&sol;former-ceo-summit-wealth-management-pleads-guilty-orchestrating-multi-million-dollar"> Original PressReleases &&num;8230&semi;<&sol;a><&sol;div>&NewLine;<div class&equals;"field&lowbar;&lowbar;item even"><&sol;div>&NewLine;

Share This Article
Follow:
FraudsWatch is а site reporting on fraud and scammers on internet, in financial services and personal. Providing a daily news service publishes articles contributed by experts; is widely reported in thе latest compliance requirements, and offers very broad coverage of thе latest online theft cases, pending investigations and threats of fraud.
Leave a Comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Exit mobile version