Pennsylvania man scams Morgantown business out of $3.5 million | USAO-NDWV

CLARKSBURG, WEST VIRGINIA — The former manager of a Morgantown construction company has admitted stealing millions of dollars from the company, U.S. Attorney William Ihlenfeld said.

Michael D. Allen, 60, of Irwin, Pennsylvania, pleaded guilty today in federal court to wire fraud and money laundering. Allen was previously a director of ABB Construction, LLC, which did business as Accelerated Construction Services. Allen used his position to illegally divert $3.5 million in company funds for his personal benefit.

“When someone abuses a position of trust for personal financial gain, it can be crippling for individuals and businesses,” U.S. Attorney Ihlenfeld said. “For this reason, we will continue to be aggressive in our pursuit of white collar criminals like Mr. Allen.”

One of the items Allen bought with the stolen money was a 5.19 carat diamond ring for $113,250.

Allen faces up to 30 years in prison in addition to being required to repay the money he stole. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based on the seriousness of the offenses and the criminal history, if any, of the defendant.

Assistant U.S. Attorney Jarod J. Douglas is pursuing the case on behalf of the government. The Internal Revenue Service Criminal Investigations and the Monongalia County Sheriff’s Office investigated. The FBI participated in the investigation.

U.S. Magistrate Judge Michael John Aloi presided.

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