Miami, FL (KWCH) – Patrick Lee Allen, aged 45 or 46, appeared in Miami federal court on Tuesday to face money laundering and wire fraud charges. Federal prosecutors allege that Allen ran a multi-year, multi-victim investment fraud scheme that defrauded investors out of millions of dollars.
The case, prosecuted in the Southern District of New York, involves victims across the country, including one from the Bronx. Authorities claim Allen used funds from his victims for personal luxuries, such as a private jet subscription and sports tickets, rather than for legitimate investments.
According to federal criminal complaints, Allen’s first group of victims, at least nine individuals, invested approximately $2.4 million into a company named “Compass Fuel & Oil, Inc.” that was allegedly involved in the scheme. Records show that Compass was registered in Miami but is now inactive.
As the scheme progressed, Allen allegedly used additional companies, including “AEA HBCU Fund” and “One Leaf LP,” to continue defrauding victims. One victim, in particular, was promised a return of more than $55 million from a $1 million investment in just 12 months.
Prosecutors said that after being recommended by a personal friend, a Bronx resident invested $400,000 from a legal settlement, with the understanding that the money would benefit historically Black colleges and universities (HBCUs). While a small portion was reportedly directed to these schools, most of the money was used by Allen for personal expenses such as jewelry, cash withdrawals, food, and travel.
Following his arrest, Allen was granted a $100,000 personal surety bond by U.S. Magistrate Judge Lissette Reid. He will be held on home detention and permitted to travel between South Florida and New York for court appearances. Additionally, he has been ordered to surrender his passport.
