Phony Marin County Marine packs up gym as he faces federal investigations

SAN RAFAEL, Calif. (KGO) -- A Marin County gym owner who made a name for himself with phony military credentials is feeling the heat. He's packing up his gym and moving out as the FBI investigates. All this comes after Friday's I-Team investigation into the "House of Steel."

Dozens of young men joined the Marines based, at least in part, on Greg Allen's phony stories. As two federal agencies investigate possible fraud, it's Allen who is taking action.

Late Tuesday night, one of the neighbors called me with a tip that the 67-year-old was clearing out his gym in San Rafael. I spotted his Jeep packed with boxes. And on Wednesday morning, a moving crew carried out barbells, exercise bikes, and other machines. It was a full truck load. It appears the House of Steel is closed for business, but Allen would not tell me what's going on.

The typical scene at the House of Steel on Wednesday's between 5 a.m. and 7 a.m. was Allen training Marin County teens with an interest in military. There was no workout this Wednesday.

As I revealed Friday night, Allen presented himself as a war hero; a Marine first lieutenant with a Purple Heart, Bronze Star and many other medals. But, it's all a lie. Public records show he never served in the Marines, never went to Vietnam, and that he spent just eight months in the Navy before being discharged with a bum knee.

That is such a shock to people who have come to know Allen over the years.

"He's supposed to represent the best of our society," said Army veteran Stephen Nicholas. "And to let us down like this, I'm sure everyone around here is puzzled about that."

Not only has Allen removed the workout equipment, he has taken down most of the Marine memorabilia at the gym including the flags, the parking sign, and a banner of four young men who died in service.

Allen included them on his Facebook page -- four graduates of the House of Steel KIA -- killed in action. But that's not true. He now admits to me he trained only one of the Marines. Allen posed in front of his casket wearing those phony medals.

Marine Sergeant James Brown rode with the Patriot Guard that day for the young man's funeral.

"And to see someone standing guard over him like that who is a complete imposter, a complete poseur, I found it just disgusting," he said.

Brown has been funneling information to the FBI for its investigation into possible fraud committed by Allen. And the VA is also checking if Allen received benefits he did not deserve after I snapped a shot of his VA card with Marine insignia.

The father of the young Marine in the casket does not want to appear on camera, but he tells me he is furious how Allen lied to his son and to dozens of other young men.

If you have a tip on Greg Allen and what he's done, email me here or calll 1-888-40-I-TEAM.