Allan George Cooper of Montgomery was convicted May 5 on charges of mail and wire fraud in connection with a $50 million investment scheme involving approximately 50 victims.
Cooper pleaded guilty to the charges in U.S. District Court for the Southern District of Texas. Sentencing is scheduled for Sept. 2.
Cooper was the president of A.G. Cooper Associates. He told potential investors that he was an investment adviser, but he was not registered as one with the Texas State Securities Board. Cooper also falsely stated he was making short-term loans to businesses that could not get traditional financing from banks or other lenders.
Cooper met some investors through a church group and others from referrals from investors. He told investors they would earn more than 12% returns in as little as a few months.
Cooper occassionally made monthly payments to investors, but the money came from new investors in the scheme.
In addition to the Ponzi scheme payments to some investors, Cooper spent the majority of investors' money to pay his credit cards, fund his other companies, and pay personal expenses for himself and his family.