Sentencing Begins For Businessman Who Defrauded Investors Out Of $1 Million

wichtendahl mugshot

Sentencing began Wednesday in Fayetteville for the Rogers businessman convicted of defrauding investors out of more than $1 million by selling them parts of a fake Bulgarian software company. The defendant’s sentence is not expected to be announced until Friday, according to the U.S. Attorney’s Office in Fort Smith.

The multi-day sentencing hearing comes 10 months after Allen Wichtendahl pleaded guilty on one charge each of mail fraud, securities fraud and money laundering, in exchange for the other 33 charges against him being dropped, court records state.

As part of the plea agreement, Wichtendahl also agreed to relinquish more than $93,000 seized by authorities from his Bank of America and Hancock Bank accounts, according to court documents.

Wichtendahl was arrested in January 2013 following a federal investigation into allegations he bilked investors out of more than $1 million while pretending to sell them parts of a fictional company. The defendant sold parts of the fake company, New Vision Technology, for as much as $40,000 per “part” to investment fraud victims while telling them the supposed computer software company was selling Amway products in Bulgaria, the plea agreement states.

Court documents state Wichtendahl told victims they would “get rich” from investments. Instead, they lost all of their money while the defendant used the money on luxury cars, an apartment, a second home, furniture, diamond jewelry, a wedding and reception, child support payments, dental bills and upscale clothes, records state.

Wichtendahl began the scheme in the mid-1990s and continued it after moving from Pensacola, Florida to Rogers in 2009. He set up an office address on Stoney Brook Road in Rogers and deposited $877,521 in investor money into a Bank of America account in Springdale after moving to Arkansas, records state.

Court documents state the fraud defendant hosted investors at the office and had victims mail money to the address. He also composed monthly investor reports for investors.

Federal authorities raided Wichtendahl’s office in Rogers in May 2012 while investigating fraudulent securities sales. Within a week, the defendant sent an email to investors telling them to continue sending payments to him, according to court documents.

A warrant was issued for Wichtendahl’s arrest in January 2013. He was arrested three days later and pleaded guilty in the case nine months later.

12 comments

  • Nark-ansas

    Yea, 6 months in a “camp” with golf courses. Thats why i get off when i hear about all of the mass atrocities perpetrated on americans. They deserve everything they get.

  • tex2

    Why would anyone want anything to do with Amway? It is a scam. See for yourself, google “stop the amway tool scam wordpress”

  • bob

    Amway haven’t heard that word since the 90’s I remember that pyramid skeem surprised its still around.

  • Faith

    I am not an Amway fan. However, Amway and like products are a few of the only things the poor people in outlaying areas in Bulgaria have access to. No WalMarts or Walgreens in these areas. In these remote small towns, the elderly widowed women set up a small shop in their homes and sell these products for a meager income. Mostly toothpaste and soap. Without this small income, they would likely starve or freeze to death. Sounds to me this guy was trying to help these poor people.

    • tex2

      Faith, is your last name Sloan, of TelexFree “fame?” Regardless, poor people selling overpriced products to other poor people makes no sense. Did you read the story? The guy set up a fake company to take money in, and it doesn’t sound like “the poor people in outlaying areas in Bulgaria” would even know how to use a computer, let alone have internet access to access the fake company website.

      • Faith

        Can you rocommend another company these people could use? What would you recommend the poor do to make a living in a former Soviet block country? Im not going to judge this person through the media either. Allegedly is the word I believe they used.

      • tex2

        I’ll assume you are Faith Sloan, the TelexFREE scam artist, as well as several other MLMs over the years. I have never been to Bulgaria and am not in a position to rocommend [sic] an alternative to a scam to the poor. I’ll judge them, because if they’re associated with Amway, they are associated with the largest MLM scam on the planet. I’ll let the court and legal system use the term “allege,” I use the terms facts and logic.

  • Faith

    Im not Sloan. I just have first hand knowledge about the poor in these and other 3rd world countries from my travels and mission work. I appreciate they try hard to make a living and not depend on a govt. hand out to take care of them like so many here do. It is simply supply and demand and their way to experience capitalism. They including their suppliers have to pay taxes at the port of entry. Their govt approves the processes and makes sure no scam is in play. Thank you for giving me the opportunity to discuss this with you. Like I said, I am no fan of Amway or use or sell anything they have.

    • tex2

      Congratulations for not being Sloan (assuming you’re telling the truth), I’ve traveled the world and have seen the poor as well. Consider that half the world survives on $2/day, and half of them on $1/day. If you’ve seen even a single poor area, you can relate to these numbers. They have to try hard, other governments don’t have the handouts we have. It’s not capitalism when it’s wrapped in a scam. Scams aren’t limited to whether taxes are paid. If you’re no fan of Amway, why would you support others involved with it?

      • Faith

        I am telling the truth I am not Sloan or a Amway or equivalent supporter. I wholly support free will and a good work ethic. The sad part is, the world economy today doesn’t even allow a $2 a day job to exist. I give credit to anyone that tries to provide jobs or a means to earn a wage. People here don’t have a clue to what real poverty is. I know this guy being sentenced was working on helping build manufacturing and farm produce farming in Africa. They failed to mention some that in this trial by media. I did simple google search on his name.

      • tex2

        Based on the information currently available, it’s impossible to know whether you’re Sloan, she is an accomplished liar. I’ll accept your insistence that you’re not her, it’s not the central topic of this story. The world economy allows $2/day (or more) jobs, just not enough of them. He has a right to a trial by jury, but the court of public opinion considers him a crook. Bernie Madoff was a well known philanthropist, Hitler had a pet dog that adored him and children who looked up to him, so just because he did/does some good stuff has NOTHING to do with whether he’s a crook. Even the Amway owners do good things, but it’s with money stolen from others. Would you respect a bank robber who took some of his money and gave it to charity?

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