Former Charlotte Resident Sentenced to 24 Months in Prison on Securities Fraud and Wire Fraud Conspiracy Charges
CHARLOTTE, NC—Today, U.S. District Judge Robert J. Conrad, Jr. sentenced Michael Francis Egan, III, 33, formerly of Charlotte, to 24 months in prison and two years of supervised release on conspiracy to commit securities and wire fraud charges, in connection with a fraudulent investment scheme, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Judge Conrad also ordered Egan to pay more than $300,000 as restitution to his victims.
U.S. Attorney Rose 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 filed court documents and today’s sentencing hearing, from August 2007 to February 2012, Egan carried out a fraudulent investment scheme by inducing his victims to enter into various fictitious business and investment contracts. According to court records, Egan promised his investor victims that he would invest their money in various projects, including Halloween and holiday themed attractions, land development, and television shows, among others. To further induce his victims, Egan lied about his financial background and personal assets and about his professional connections and investments. For example, 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. 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 and pet care. According to court records, Egan defrauded more than 14 victims of over $300,000. Egan pleaded guilty to the charges in April 2015.
At today’s sentencing hearing, Judge Conrad described Egan’s conduct as “a long-term fraud scheme with numerous acts of deception and fraud.” Judge Conrad also noted the defendant’s “predatory nature of the stealing of money […] considering the amount of money, the amount of victims […] and the defendant’s cunning on innocent victims.”
Egan will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The FBI investigated the case. The prosecution was handled by Assistant U.S. Attorney Kevin Zolot of the Western District of North Carolina.