Fraudster lawyer arrested

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US District Court, Concord, NH.

MANCHESTER, NH – The Manchester attorney who stole millions from his clients and then skipped his federal sentencing hearing is now behind bars.

Federal agents arrested John Allen, 63, last week after he failed to show up to his sentencing hearing in the United States District Court in Concord, according to court records. Allen, who used to live in Bedford, had garnered the ire of federal prosecutors ahead of his Feb. 25 sentencing date by failing to disclose his finances.

Allen pleaded guilty to money laundering and wire fraud charges in November as part of a negotiated plea agreement. He agreed to repay more than $2.4 million to his clients and faced the project of a 57-month prison sentence.

However, according to Assistant United States Attorney Mathew Hunter, Allen was dodging federal officials who wanted to see his financial records. Hunter said that Allen was likely trying to hide assets from the government.

“This is a financial fraud case where the defendant stole more than $2.4 million from his victims,” Hunter wrote. “The defendant’s continued refusal to provide this financial information raises a particular concern that the defendant may have assets that he is trying to hide.”

Allen has made a financial disclosure to federal law enforcement since his arrest, and he is seeking a public defense attorney claiming that he cannot afford his own lawyer, according to court documents. Allen had been representing himself in court up until his arrest.

Allen specialized in real estate and business law, and he pleaded guilty to creating fake investments for clients. The money went into bank accounts he controlled, and he used the money for his own personal expenses, according to court records.

Allen is due back in court on Wednesday for his new sentencing hearing.