Former Georgia Legislator Settles $23 Million Fraud With SEC (1)

Clarence Dean Alford, a former Georgia state legislator, agreed to settle SEC allegations of fraudulently inducing at least 100 investors to hand over more than $23 million for unregistered, high-yield promissory notes, the SEC said Thursday.

Alford “grossly misrepresented” his company Allied Energy Services LLC’s financial condition to potential investors, the Securities and Exchange Commission told the U.S. District Court for the Northern District of Georgia. The settlement calls for Alford, who didn’t admit wrongdoing, to pay an unspecified amount in disgorgement and civil fines.

Alford sent around $5.8 million in investor funds to his personal accounts and used some ...