LOS ANGELES – The former CEO of a Valencia-based financial services company was sentenced today to 33 months in federal prison for helping to run a Ponzi scheme that defrauded dozens of investors – including his own clients – out of over $2.3 million with false promises of earning up to 20% monthly returns on their money.
Scott Allensworth, 68, of Santa Clarita, was sentenced by United States District Judge John A. Kronstadt, who also ordered him to pay $2,321,429 in restitution.
In July 2021, Allensworth pleaded guilty to one count of wire fraud.
Allensworth was the owner and CEO of Capital Growth Group Associates (CGGA), a company that provided financial services to clients, including tax advice and return preparation services, accounting services, retirement planning and investment advisory services.
From November 2015 to March 2017, Allensworth schemed to defraud investors along with David Hunt Weddle, 66, who managed a private investment fund through JustInfo LLC, a company Weddle controlled and operated out of his Somerset, Kentucky home.
Allensworth and Weddle solicited money – to be invested with CGGA and Weddle – from victim-investors, who included Allensworth’s clients. These clients trusted him based on their prior relationship with him, and recommended Allensworth to their friends and family members, who also became victims of the…