Investment Club Exec Admits To $40M Fraud

Law360, New York (September 22, 2011, 8:33 PM EDT) -- The operator of a Michigan-based investment club admitted Thursday in Virginia federal court to charges of defrauding participants of $40 million by putting their funds in high-risk ventures without their knowledge.

The founder of Cash Flow Financial LLC, Alan James Watson, pled guilty to one count of wire fraud related to the scheme, for which he faces up to 20 years in prison, according to a statement from the U.S. Attorney's Office in the Eastern District of Virginia.

“Without the consent of his clients, Mr. Watson gambled away investors’...
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Case Information

Case Title

Commodity Futures Trading Commission v Watson etal.,


Case Number

2:11-cv-10949

Court

Michigan Eastern

Nature of Suit

Securities/Commodities

Judge

Mark A. Goldsmith

Date Filed

March 10, 2011

Government Agencies

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