The allegations in the indictment revolve around a common business practice known as factoring, in which a business will sell rights to future income to a lender in exchange for up-front money. The lender profits by buying the future income at a discount. Alford is accused of transmitting fraudulent documents to prove he had future accounts worth $2.2 million as part of an effort to sell them for nearly $1.7 million, the charges say.
In August, the U.S. Securities and Exchange Commission charged Alford with three counts of violating the federal Securities Act, saying he fraudulently raised $23 million for Allied Energy from at least 100 investors from 2017 to 2019. Regulators said Alford used the money to build a multimillion dollar house and pay earlier investors, the classic hallmark of a Ponzi scheme. Many of the investors were Indian-Americans who live in the Columbus area. The scheme collapsed when Alford couldn’t make scheduled payments.
Alford settled the charges without admitting guilt and was ordered last month to pay $10.8 million to the investors.
Dozens of investors also sued Alford.
Alford served 10 years in the state House, later serving on the state Board of Education, the board of the Technical College System of Georgia and the Board of Regents.