Former CEO of Summit Wealth Management sentenced for orchestrating a multi-million dollar fraud sche

[nitpicker]

https://www.justice.gov/usao-ndga/pr/former-ceo-summit-wealth-management-sentenced-prison-orchestrating-multi-million-dollar

Department of Justice
U.S. Attorney’s Office
Northern District of Georgia

FOR IMMEDIATE RELEASE
Friday, August 18, 2017

Former CEO of Summit Wealth Management sentenced to prison for orchestrating a multi-million dollar fraud scheme

ATLANTA – Angelo Alleca, the former CEO of Atlanta, Georgia, based Summit Wealth Management, has been sentenced to eight years in federal prison for a multistate investment fraud scheme. The scheme victimized over 300 people who lost more than $24 million dollars.
(snip)

According to U.S. Attorney Horn, the indictment, and other information presented in court: From on or about 2004 until 2012, Alleca acted as the President and Chief Executive Officer of Summit Wealth Management, an investment adviser headquartered in Atlanta. 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 lost a substantial portion of the funds through securities trading. Additionally, he improperly used the funds to operate Summit Wealth Management, make interest payments and redemptions to earlier investors, and to pay personal expenses. During the course of the scheme, fraudulent account statements were mailed to investors showing gains, when there was no money in the funds.

In 2007, Mark Morrow, a co-defendant in the case and Alleca’s former business partner, established Detroit Memorial Partners LLC, which sold promissory notes to acquire and manage cemeteries in Michigan. Between 2007 and 2012, Morrow and Alleca marketed promissory notes in Detroit Memorial Partners to Summit Wealth clients in Atlanta and throughout the country. Detroit Memorial Partners’ offering documents contained material misrepresentations, including that the notes would be secured by real property when in fact no security interest was ever recorded with respect to the notes. Moreover, shortly after receiving the note proceeds, Alleca and Morrow diverted funds for improper purposes including, making interest payments and redemptions to investors in Summit Wealth Management funds and personal expenses. Because of their fraud schemes, over 300 investors lost over $24 million dollars invested in the Summit Funds and Detroit Memorial Partners LLC.
(snip)

[Frustratedlady]

1. Victimized over 300 people who lost $24M? Eight years?

Boy, I'll bet that throws the fear of God into others who have been thinkin' about doing the same crime.