The Securities and Exchange Commission (SEC) has filed charges against Craig Allen in the United States District Court for the Northern District of Georgia, accusing him of violating multiple securities laws and regulations.
Investors in The Cheetah Fund, an Atlanta-based hedge fund founded and managed by Allen, have reportedly lost millions of dollars in what the Securities and Exchange Commission (SEC) alleges to be a fraudulent scheme.
According to the SEC’s complaint, Allen misled investors about the Cheetah Fund’s performance from January 2019 to January 2023, falsely claiming exceptional returns. In reality, both the fund and a related company, C.M. Allen, incurred substantial trading losses exceeding $4.59 million.
These charges follow recent SEC filings against other entities like GeaSphere, Bradesco Global Advisors, and Credicorp Capital Advisors.
Additionally, Allen allegedly misrepresented the fund’s auditing and tax arrangements, falsely claiming engagement with a specific accounting firm. Despite significant losses and minimal legitimate earnings, Allen is accused of misappropriating at least $2.64 million from the fund and its investors.
The SEC claims that Allen has only returned approximately $900,000 to Cheetah Fund investors to date, resulting in estimated losses of about $9 million.
In response, the SEC seeks various penalties, including a permanent injunction, disgorgement with prejudgment interest, civil penalties, and a permanent officer-and-director bar against Allen. Moreover, the Commission aims to restrict Allen from participating in any security-related transactions, except those in his personal accounts.
