A 46-year-old man has pleaded guilty to one count of wire fraud after an
alleged Virginia investment fraud scheme. Alan James Watson, of Clinton
Township, set himself up as chief executive officer of an investment club.
He has been accused of taking $40 million from investors who were part
of that investment club. Watson will be sentenced on December 9th.
According to officials, Watson solicited the investments with a promise
that investors would receive returns of 10% each month. Unfortunately,
he has admitted that he actually only invested $6 million from his 750
investors. The remaining $34 million allegedly went into high-risk investments
without consent from those affected. Losses from the risky investments
amounted to millions of dollars.
Lanny Bruer, the Assistant Attorney General for the Eastern District,
said that Watson "gambled away investors' funds on risky ventures
that led to millions of dollars in losses. He used his investment club
to cheat people who trusted him out of their savings." Bruer also
warned that "the Justice Department will continue to be aggressive
in our pursuit of financial fraudsters - whether they are on Wall Street
or Main Street."
The Virginia securities fraud lawyers with Meyer Wilson represent victims
of stockbroker misconduct and fraud in FINRA arbitration, meditation,