An attorney pleaded guilty in New Hampshire federal court to defrauding his clients of over $2.4 million that was given to him to hold in escrow for private lending, real estate transactions and business deals.
Prosecutors said John Allen, 63, of Bedford, told his clients he would hold the funds in an account, but transferred the funds into another bank without the authority to do so and used them for personal expenses.
In one case, prosecutors said, Allen had a client invest more than $1.5 million in fraudulent promissory notes that Allen created using other people’s identities. He did not invest the money and kept it for himself.
Prosecutors said to hide the sources of the funds he stole from his clients, Allen comingled fraud proceeds and legitimate funds.