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George David George Sentenced to 20 Years for Securities Fraud
NASHVILLE, Tenn. – March 18, 2019 – George David George, 64, of Franklin, Tennessee, and the former owner of WellCity, Inc. (“WellCity”) has been sentenced to 20 years in federal prison for operating a fraudulent investment scheme that bilked dozens of investors out of $3 million, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
George was sentenced today by visiting U.S. District Judge Billy Roy Wilson, sitting by designation, who also ordered George to pay $2,833,968.77 in restitution and ordered that he remain in custody to begin serving his sentence. George has been in federal custody since January 4, 2019, when he was apprehended by U.S. Marshals in Florida after absconding from the Middle District of Tennessee in May, 2017.
“I commend our prosecutors, law enforcement partners and the many victims who persevered throughout the life of this case,” said U.S. Attorney Cochran. “Because of their tenacity, Mr. George will have little to no chance of inflicting his many deceitful scams upon anyone else as he spends the next 20 years in prison.”
George was initially charged in May 2015 with securities fraud, mail fraud, wire fraud, and money laundering and was charged with additional counts of wire fraud in February 2017. George was later indicted in May 2017 for failing to appear in U.S. District Court, after he failed to appear for a bond revocation hearing and prior to the start of his trial scheduled for May 16, 2017.
Today, during a plea hearing, George pleaded guilty to seven counts of wire fraud, and one count of mail fraud, securities fraud and money laundering. George admitted that he represented himself as the founder and CEO of WellCity, Inc., a company based in Brentwood, Tennessee, that purported to operate a social network devoted to wellness.
George solicited millions of dollars from investors by making misrepresentations regarding the revenue and assets of the company, misrepresentations regarding collateral to secure investors’ loans, and misrepresentations regarding the status of a supposed WellCity initial public offering. George concealed from investors the facts that WellCity had earned very little revenue and had not successfully attracted significant corporate sponsorship;
George continued to offer supposed shares in WellCity stock even after the Tennessee Securities Division of the Department of Commerce and Insurance issued a Cease & Desist Order prohibiting him from doing so.
Key Facts
- State: Tennessee
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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