MIAMI – A man appeared in Miami federal court on money laundering and wire fraud charges Tuesday after prosecutors said he ran a multi-year, multi-victim, multi-million dollar investment fraud scheme.
Court records show the case against Patrick Lee Allen, aged 45 or 46, is being prosecuted in the Southern District of New York. Authorities said one of the victims lives in the Bronx.
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He spent victim funds on personal expenses, like a private jet subscription service and sports tickets, authorities allege. They said he ran the scam from “at least” 2021 up until this month.
Prosecuting documents don’t list Allen’s place of residence, but one of the companies officials said he used as part of the scheme was registered in South Florida.
According to a federal criminal complaint, Allen’s “first tranche” of victims ― at least nine ― invested about $2.4 million to be traded through a company called “Compass Fuel & Oil, Inc.”
State business records show that Compass, inactive as of Wednesday, was listed as having a principal address at a downtown Miami office tower and a mailing address at a UPS Store in Hallandale Beach.
Second and third tranches of victims invested more money, prosecutors allege. They said he used additional companies called “AEA HBCU Fund” and “One Leaf LP” as part of the scheme.
They said Allen promised one victim a more than $55 million return over 12 months on a $1 million investment.
After a “personal friend” endorsed Allen, the Bronx victim invested $400,000 after receiving a $1.4 million legal settlement, prosecutors said. They said he promised the victim that the money would be going to help students at historically Black colleges and universities.
Prosecutors said “a small proportion” did go to HBCUs, but Allen spent most of it on personal expenses like “cash withdrawals, jewelry, food, and travel.”
The victim “received no profits,” they said.
Court documents show that following his arrest, U.S. Magistrate Judge Lissette Reid gave Allen a $100,000 personal surety bond and ordered he be held on home detention.
He will be allowed to travel between South Florida and New York for court appearances, those documents state.
He was also ordered to surrender his passport.
Read the complaint: