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CEO of East Bay-Based Internet Companies Indicted on Wire Fraud and Securities Fraud Charges
A federal grand jury has indicted Alan Anderson, charging him with wire fraud and securities fraud charges related to a scheme to use materially false and fraudulent pretenses to induce investors to make contributions to three businesses marketed as providing child-friendly internet services.
The indictment, filed October 13, 2021, and unsealed today, describes how Alan Anderson, 59, of Walnut Creek, used misrepresentations to solicit investments for Imbee, Inc., a Delaware corporation based in Walnut Creek; Fanlala, a California corporation marketed as a service providing internet-based music streaming for children; and Fruit Punch, a California corporation marketed as providing music-streaming service for children.
According to the indictment, Anderson raised money for his companies by making false representations and creating false documents to support his bogus claims, including creating fraudulent income statements and profit and loss statements and misrepresenting the companies’ profitability to investors and potential investors.
The indictment alleges that Anderson created and altered contracts to represent falsely that one or more of his companies would be acquired by larger companies, and that he created and altered contracts to make fraudulent claims that his companies created partnerships with other existing companies.
Anderson was arrested today in Walnut Creek and will make his initial federal court appearance tomorrow at 10:30a.m., before U.S. Magistrate Judge Thomas S. Hixson, in San Francisco.
Anderson is charged with four counts of wire fraud, in violation of 18 U.S.C. § 1343, and one count of securities fraud, in violation of 15 U.S.C. §§ 78j(b) & 78ff and 17 C.F.R. 240.10b-5.
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.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Assistant U.S. Attorneys Christiaan Highsmith and Scott Joiner of the Office’s Corporate and Securities Fraud Section are prosecuting this case with the assistance of Claudia Hyslop, Morgan Byrne and Ralph Banchstubbs. This prosecution is the result of an investigation by the FBI.
Defendant Information: Alan Anderson, CEO of Imbee, Inc., Fanlala, and Fruit Punch.
Criminal Charges: Wire fraud (4 counts) and securities fraud.
Location: Walnut Creek, California.
Date: October 13, 2021.
Sentence/Outcome: Currently pending.
Dollar Amounts: $250,000 fine (wire fraud), $5,000,000 fine (securities fraud).
Key Facts
- State: California
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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