According to newspaper the Houston Chronicle, Allan Cooper met investors through a church group and through referrals from other investors.
Cooper was arrested in May 2016 and accused of running a Ponzi scheme that promised low-risk, high return investments in various vehicles, including short-term loans to small companies that could not get back financing.
Investors expected returns of more than 12%.
He used new money to pay previous investors and fund his own lifestyle. This included paying credit card bills and funnelling money into accounts he controlled.
Two of his victims testified at his trial about the hardships they had faced following Cooper’s deceptions.
In addition to a custodial sentence, Cooper has been ordered to pay $5.8m in restitution.
Court appointed lawyer
At the time of his arrest, the media reported that Cooper was charged with 10 counts of mail and wire fraud and faced up to 20 years in prison. He was released on $50,000 bail and asked for a court-appointed attorney because of his financial situation.
He pleaded guilty to one count of wire fraud and mail fraud in May 2017.
