Former Charlotte Resident Indicted on Securities and Wire Fraud Charges
CHARLOTTE, NC—On Tuesday, December 16, 2014, a grand jury sitting in Charlotte returned a federal indictment against Michael Francis Egan, III, 32, formerly of Charlotte, charging him with securities fraud and wire fraud in connection with a fraudulent investment scheme, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Tompkins is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division.
According to allegations contained in the criminal indictment, from August 2007 to February 2012, Egan engaged in a fraudulent investment scheme by inducing his victims to enter into various fictitious business and investment contracts. The indictment alleges that Egan promised that he would invest the victims’ money in various projects, such as Halloween themed attractions, holiday themed attractions, land development and investment deals, and television shows, among others, when, in reality, Egan did not invest victims’ money as promised.
According to allegations contained in the indictment, Egan further induced his victims to invest with him by lying about his financial background and personal assets. For example, the indictment alleges that Egan forged brokerage account statements to reflect fraudulent balances when, in reality, those accounts had no money or a fraction of the purported amount.
According to allegations contained in the indictment, Egan also lied to his investors about his professional connections and his investments. For example, as alleged in the indictment, Egan falsely told his victims he was a close associate and friend of the CEO of a major bank, a close associate or employee of a well-known investment mogul and that he owned a percentage of well-known hotels and casinos in Las Vegas. According to the indictment, instead of investing the victims’ money as promised, Egan used it to fund his lifestyle and to pay for personal expenses such as rent, his car lease, groceries, restaurants medical bills and pet care, among others.
Egan will be ordered by the U.S. District Court to appear on a summons for his initial appearance, which will be scheduled by the Court. If convicted, Egan faces a maximum of 20 years in prison and a $5 million fine for the securities fraud count and a 20 year prison term and a $250,000 fine for the wire fraud count.
The details contained in this indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI investigated the case. The prosecution is being handled by Assistant U.S. Attorney Kevin Zolot of the Western District of North Carolina.