A former Georgia state lawmaker and university regent has been sentenced to eight years in prison for racketeering, the state attorney general’s office said.
Dean Alford was charged in May in Rockdale County with racketeering, fraud and forgery over allegations he tampered with contracts while seeking money from a finance company.
After pleading guilty to racketeering on Thursday, Alford was sentenced to 15 years in prison, eight of which to serve in jail and the rest on probation, according to the attorney general’s statement. A condition of his probation is that he cannot do any business with the state.
Alford was accused of falsely claiming that his company, Allied Energy Services, owed five entities $ 2.2 million, including the University of Georgia and Georgia Military College, a public college not run by the regents. He also allegedly claimed that two banks and a solar energy company owed him money.
Officials in Georgia’s university system said the bills were bogus and the universities did not do business with the regents. Alford resigned from the board shortly after.
The allegations in the indictment revolve around a common business practice known as factoring, in which a company will sell rights to future income to a lender in exchange for an initial amount. The lender benefits by buying the future income at a discount. Alford is accused of forwarding fraudulent documents to prove he had future accounts worth $ 2.2 million as part of an effort to sell them for nearly $ 1.7 million.
In August 2020, the United States Securities and Exchange Commission filed a civil lawsuit against Alford, claiming he fraudulently raised $ 23 million for Allied Energy from at least 100 investors from 2017 to 2019. Alford settled these charges without admitting guilt and was ordered in April to pay $ 10.8 million. to investors.
Dozens of investors have also sued Alford.
Alford served 10 years at State House before serving on the State Board of Education, the Board of the Technical College System of Georgia, and the Board of Regents.