SAN FRANCISCO— A federal grand jury has indicted a 59-year-old Walnut Creek man on wire fraud and securities fraud charges in connection with a decade of alleged efforts to attract potential investors to support child-friendly online services, the U.S. Justice Department said Wednesday.
According to an indictment filed October 13, Alan Anderson “used misrepresentations to solicit investments” for Imbee, a child-friendly social-media platform owned by Anderson under a Delaware corporation, as well as Fanlala and Fruit Punch, child-oriented music-streaming services owned by Anderson under California corporations.
The indictment alleges that Anderson used documents and statements to misrepresent the companies’ profitability from April 2010 through May 2019. Prosecutors say he raised money by claiming one or more of his companies were acquisition targets and altered contracts to allege partnerships with outside firms.
Anderson was arrested Wednesday in Walnut Creek and was scheduled to appear in federal court before Judge Thomas Hixson at 10:30 a.m. Thursday. He was charged with four counts of wire fraud, each carrying a maximum sentence of 20 years in prison and a $250,000 fine, as well as a lone count of securities fraud, carrying a maximum sentence of 20 years in jail and a a $5,000,000 fine.
Contact George Kelly at 408-859-5180.
Source: www.mercurynews.com