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Press Release

Local Man Sentenced for $5 Million Investment Scam

For Immediate Release
U.S. Attorney's Office, Southern District of Texas

HOUSTON - A 77-year-old Montgomery man has been ordered to federal prison following his convictions on two counts related to an investment fraud scheme involving more than 50 victims and more than $5 million, announced Acting U.S. Attorney Abe Martinez. Allan George Cooper pleaded guilty May 5, 2017.


Today, U.S. District Judge Melinda Harmon handed Cooper a 121-month sentence. At the hearing, two victims presented live testimony to the Court about the financial hardships they and their families faced because of Cooper’s fraud. In handing down the sentence, Judge Harmon noted Cooper was a danger to the community. He was further ordered to pay a $5,805,535 in restitution and will be required to serve three years of supervised release following completion of the prison term.


Cooper was president of Effective Energy Alternatives dba A.G. Cooper Associates, managing member of AG Cooper LLC and registered agent for Effective Funding Network LLC. Cooper created AG Cooper & Associates and presented himself as an investment advisor, meeting investors through a church group and through referrals from other investors. He solicited and received more than $5 million from investors, many of whom believed he was making short-term loans to small companies who could not get bank financing.


Cooper received investor funds via wire transfers or checks handed to him in person. He presented investment programs that projected more than 12% returns in a short period of time and lulled investors with false and misleading statements he mailed to their homes on a quarterly basis. On occasion, he would make monthly payments to investors with funds provided by new investors. Deceived by these monthly payments and fraudulent quarterly statements, these victims believed their money was being properly invested, and on some occasions, would re-invest more money with Cooper. However, analysis of his bank accounts revealed the majority of the monies were used to pay back other investors, pay his credit cards, fund his other companies and to enrich his own lifestyle. 


Previously released on bond, Cooper was taken into custody following the sentencing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.


The FBI conducted the investigation with assistance from the Texas State Securities Board. Assistant U.S. Attorney Suzanne Elmilady is prosecuting the case.

Updated November 17, 2017

Financial Fraud