Investment Scammers Busted
A federal jury in Birmingham, Alabama found a father and son, Donald Watkins Sr., 70, of Atlanta, Georgia, and Donald Watkins Jr., 46, of Birmingham, guilty Friday of multiple charges for their roles in investment fraud and bank fraud schemes in which they stole over $10 million from individual investors—including multiple former professional athletes—and Alamerica Bank of Birmingham, Alabama.
According to evidence presented at trial, between approximately 2007 and 2013, Donald Watkins Sr. sold “economic participations” and promissory notes connected with Masada Resource Group, a company that he ran as manager and CEO. Investors paid millions of dollars after Donald Watkins Sr. and Donald Watkins Jr. falsely represented that the money would be used to grow Masada, which Donald Watkins Sr. described as a “pre-revenue” company that supposedly had technology that could convert garbage into ethanol.
Instead of investing the money into Masada, however, Donald Watkins Sr. and Donald Watkins Jr. diverted funds to pay personal bills and the debts of their other business ventures. The evidence showed that victim money was used to pay for Donald Watkins Sr.’s alimony, hundreds of thousands of dollars in back taxes, personal loan payments, a private jet, and clothing purchased by Donald Watkins Jr. and his wife.
Donald Watkins Sr. was convicted on seven counts of wire fraud, two counts of bank fraud, and one count of conspiracy. Donald Watkins Jr. was convicted on one count of wire fraud and one count of conspiracy. Sentencing is set for July 16 before U.S. District Court Judge Karon O. Bowdre of the Northern District of Alabama, who presided over the trial.
“The jury’s verdict today sends a clear message: Donald Watkins Sr. and Donald Watkins Jr. are frauds, plain and simple,” said Assistant Attorney General Brian A. Benczkowski. “They induced their victims to part with more than $10 million of supposed ‘investment capital’ and used it to support their lavish lifestyle.
Donald Watkins Sr. and Donald Watkins Jr. were found guilty of multiple charges, including wire fraud, bank fraud, and conspiracy. They stole over $10 million from investors and Alamerica Bank of Birmingham, Alabama.
Key Facts
- State: Alabama
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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