Allan George Cooper of Houston was arrested May 24 and charged with wire fraud and mail fraud in a $5 million investment fraud involving at least 50 victims.
According to the U.S. Attorney's Office for the Southern District of Texas, a federal grand jury returned the indictment of Cooper under seal on May 18. It was unsealed when Cooper was arrested.
The indictment alleges that Cooper guaranteed investors a return of at least 11% in what he said were low-risk investments in short-term loans, gaming investments, interim construction loans, or mortgage-backed notes. Cooper sold the investments through his company, AG Cooper & Associates.
Cooper allegedly directed investors to wire their retirement funds to custodians of self-directed IRAs. Cooper would then move the funds into his business bank accounts to invest in various investment programs. Cooper, however, used investor funds to pay his personal expenses, pay his employees, pay his credit card bills.
Cooper also paid other investors in the alleged fraud to create the appearance that the investments were generating income. The money paid to investors was a return of the investors' own money or other investors' money. He also transferred funds to other companies he controlled.
The FBI and the Texas State Securities Board investigated the case.