Fake house flipper scams two people in their 80s out of $236,000, Alabama officials say
A man told an 80-year-old and 87-year-old he would use $236,000 of their money to flip houses and invest it in his business, Alabama officials said.
Instead, he used the funds for his personal living expenses, the Alabama Securities Commission said.
Nicholas Houston Allen, 35, pleaded guilty to four charges, the commission said in a joint announcement with the Montgomery County District Attorney’s Office on Sept. 26.
McClatchy News couldn’t immediately reach Allen’s lawyer for comment.
Allen pleaded guilty to two counts of financial exploitation of an elderly person, one count of securities fraud and one count of theft of property, the agencies said. Two of the counts carry maximum sentences of 20 years in custody and fines of up to $30,000 per count. The other two counts carry maximum sentences of 10 years in custody and fines of up to $15,000 each.
Under Alabama’s Protection of Vulnerable Adults from Financial Exploitation Act, financial professionals are required to report suspicious activity in a client’s account. One of these reports initiated the investigation into Allen, resulting in an indictment a year ago, according to an October 2022 news release from the commission.
Allen, the owner of Professional Fix LLC, “through the use of deception, intimidation, or threat of force, obtained unauthorized control over the victims’ personal property,” the commission said.
In addition to the two victims in their 80s, a third victim in the scheme lost $1,700, the commission said.
“Allen prowled neighborhoods for elderly victims and came up with reasons to engage them in conversation,” ASC director Amanda Senn said in the statement. “Once he gained the victim’s trust, he persuaded them to invest in his endeavors and stole their money.”
Allen will be sentenced on a future date that will be set by a judge, officials said.
This story was originally published September 28, 2023 at 12:21 PM with the headline "Fake house flipper scams two people in their 80s out of $236,000, Alabama officials say."