SAN FRANCISCO (KRON) – A federal grand jury has charged Alan Anderson with wire fraud and securities fraud for allegedly scheming to raise money under false impressions of profitability and sending false contracts to investors.
According to court documents, Anderson owned Fanlala, Fruit Punch and Imbee, internet services that provided child-friendly music streaming and social media.
The indictment alleges Anderson created fraudulent income statements and profit and loss statements and misrepresented the companies’ profitability to investors and potential investors, and falsely claimed that his companies would be acquired by larger companies.
Accusations also allege that Anderson created and altered contracts to make fraudulent claims that his companies created partnerships with other existing companies. In addition, the indictment describes how Anderson emailed an investor to falsely claim Imbee was worth $21.6 million and that the investor owned 70% of the company.
In total, Anderson is facing four counts of wire fraud and one count of securities fraud.
If convicted, each count of wire fraud carries a maximum sentence of 20 years in prison and a maximum $250,000 fine. The securities fraud charge carries a maximum 20 years of imprisonment and a $5,000,000 fine.
Anderson was arrested today in Walnut Creek and will appear in court tomorrow.