Cedar City businessman, husband accused of $7M fraud; both held without bail4 min read

By Tracie Sullivan, for the Iron County Today

A Cedar City businessman and his husband are accused of orchestrating a fraud scheme that prosecutors say drained more than $7 million from a joint business venture over the course of a year.
Ryan John Allen faces five felony charges, including theft, communications fraud, pattern of unlawful activity, money laundering, and forgery, according to an affidavit filed in Iron County’s 5th District Court​. His husband, Terry Joe Allen, 29, was arrested earlier this month in connection with the same allegations​.

Executives at Leavitt Group Enterprises, the majority owner of AMG, were alerted in October 2024 by Zions Bank about suspicious activity involving the company’s accounts, court documents state. Bank officials reported that Terry and Ryan Allen appeared to be engaged in an Automated Clearing House (ACH) float, or kiting scheme, using AMG’s bank accounts.

“When the transfer request came from Zions Bank to the Wells Fargo account, the Allens would deny the request and apply a stop payment on the Wells Fargo account,” the affidavit states.
An ACH transfer is an electronic movement of money between bank accounts, often used for direct deposits, bill payments, and business transactions.

The scheme allowed the Allens to make bank accounts appear to have money they did not actually possess. By initiating transfers and then stopping them before completion, the Allens allegedly gained early access to funds, withdrew the money, and left the accounts artificially inflated on paper.

“Because of the multiple and consistent ACH transfers, the Zions Bank account always had a float showing that funds were available, thus allowing the scheme to continue for at least a year,” court documents state.

Hundreds of such ACH transactions were made over the course of a year, many allegedly for amounts far exceeding the available balances, according to investigators.

When confronted by LGE executives, Terry Allen denied wrongdoing. However, investigators said that within 13 minutes of being placed on unpaid administrative leave from their operational roles at AMG, the Allens initiated a $48,100 withdrawal from the company’s Wells Fargo account.

In the following days, Ryan Allen allegedly withdrew $145,000 in cash from a Wells Fargo branch in Las Vegas. According to court documents, the withdrawal slip was filled out by Allen, and bank records show the transaction occurred at 4:22 p.m. Pacific Time on Oct. 29, 2024.

Investigators also allege that the Allens attempted to lock LGE executives out of AMG’s financial accounts, rerouted revenue streams to new bank accounts, and edited financial documents to obscure fraudulent activity.

In one example, investigators said AMG funds were funneled into accounts under a company called “Vacation Offer Travel Club,” which was secretly owned by Terry and Ryan Allen. From November 2023 to October 2024, more than $1 million was transferred into Vacation Offer accounts, and much of it was quickly moved into an account labeled “RJA Holdings,” belonging to Ryan Allen​​.

According to the court documents, Terry Allen had been responsible for providing monthly bank statements to Leavitt Group executives, but had allegedly edited out sections showing ACH activity. Investigators also found that hundreds of $1 microtransactions were made each month, making the records longer and harder to audit.

The microtransactions were allegedly used to artificially lengthen bank statements, making it more difficult for auditors and company executives to identify fraudulent activity hidden among the numerous small transactions, the affidavit states.

Based on the allegations, the Iron County Attorney’s Office requested that both Ryan John Allen and Terry Joe Allen be held without bail, citing concerns they posed a flight risk and a danger to the community.

“There is clear and convincing evidence that the Defendant constitutes a substantial danger to the community and is a flight risk,” the affidavit states regarding Ryan Allen.

Officers reported speaking with Ryan Allen on April 10, 2025, after Terry Allen’s arrest. Ryan Allen allegedly told them he was in Las Vegas and would return “in a few days,” but according to law enforcement, he failed to turn himself in and calls to his phone went to voicemail.

In the meantime, defense attorney Jack Burns filed a memorandum opposing the state’s request for an arrest warrant for Ryan Allen, arguing that he had retained counsel and intended to appear voluntarily.

“The Defendant is specifically requesting this matter be set for initial appearance and represents that he will appear at said initial appearance. In other words, a warrant of arrest is not necessary,” Burns wrote.

However, during a court hearing on April 15, Judge Matthew L. Bell rejected the defense’s arguments and ordered Ryan Allen detained without bail. Both Ryan and Terry Allen are currently being held without bail at the Iron County Jail, pending further hearings.