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Lowell Man and Woman Accused of Million- Dollar Fraud

By: KNWA News
Updated: January 17, 2013
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A man and woman from Lowell have been accused of more than a million dollars in fraud.

U.S. Attorney Conner Eldridge announced today indictments on 60-year-old Allen Wichtendahl and 49-year-old Diana Stewart, both accused of defrauding investors out of more than $1 million by collecting payments through a scheme involving Nigerian power plant.

The 16-count indictment was handed down by a federal grand jury in Ft. Smith.

According to court documents, Wichtendahl convinced investors to pay him in exchange for "parts" of the enterprise, but never paid out anything in return to the investors.

The scam started in Florida in the mid 90's and continued in 2009 when Wichtendahl moved to Northwest Arkansas and met Diana Stewart.

Stewart then began helping with the scheme to defraud investors.

Between July 2009 and September 2012, Wichtendahl and Stewart made more than $1 million from investors, most of which was used to pay for their personal expenses and to maintain the appearance of a legitimate business. 

Wichtendahl has been charged with three counts of mail fraud, three counts of wire fraud, four counts of securities fraud, four counts of selling an unregistered security and two counts of money laundering.

Stewart faces the same 16 counts and could receive the same penalties.

If convicted, they each face up to $250 thousand in fines and 20 years in prison for each count of wire and mail fraud.
For each of the securities fraud charges, Wichtendahl and Stewart face $5 million in fines and 20 years in prison. 
The money laundering charges each carry penalties of $250 thousand fines or double the money made from the crime and 10 years in prison.
U.S. Attorney Eldridge said, "As this case and others demonstrate, it is a priority for our office to investigate and prosecute those who swindle investors out of their hard-earned money by fraud and deceit."
An indictment is only an allegation. Wichtendahl and Stewart are both still considered innocent.

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