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Former CEO of Wellcity Inc. Pleads Guilty to Multimillion Dollar Investment Scheme
George David George, a 61-year-old resident of Franklin, Tennessee, pleaded guilty to a multimillion dollar investment scheme in a hearing before U.S. District Court Chief Judge Kevin H. Sharp. The scheme involved securities fraud, mail fraud, wire fraud, and money laundering.
According to U.S. Attorney David Rivera, George cheated dozens of investors out of millions of dollars based on lies and deception. ‘This office will continue to target fraudulent investment scams and to prosecute those who defraud investors for their own personal gain,’ Rivera stated.
George, the founder and CEO of WellCity, Inc., a social network company based in Brentwood, Tennessee, solicited millions of dollars from WellCity investors by making false promises about the revenue and assets of the company. He also lied about the collateral to secure investors’ loans and the status of a supposed initial public offering.
‘The nation’s economy is increasingly dependent on the success and integrity of the securities and commodities markets, and financial investors should not have to fear being deceived in an already risk-filled industry,’ said A Todd McCall, Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation.
George also admitted to using funds provided by investors for his personal use, including making massive cash withdrawals at the Gold Strike casino. The Tennessee Securities Division of the Department of Commerce and Insurance issued a Cease & Desist Order prohibiting George from offering shares in WellCity stock.
George faces up to 20 years in prison on each of the four fraud counts and up to 10 years on the money laundering count. He also faces a criminal fine of up to $5,000,000 and forfeiture of criminal proceeds, and he will be ordered to pay more than $2.3 million in restitution to his victims.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, and the United States Postal Inspection Service, with assistance from the Williamson County Sheriff’s Department, and the Tennessee Department of Commerce and Insurance. The case is being prosecuted by Assistant U.S. Attorney William F. Abely.
George will be sentenced by Chief Judge Sharp on June 10, 2016.
Key Facts
- State: Tennessee
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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