Investment Club Founder Gets 12 Years For Fraud

Law360, New York (May 23, 2012, 8:23 PM EDT) -- The operator of Michigan-based investment club Cash Flow Financial LLC was sentenced to 12 years in prison and ordered to pay roughly $36 million in restitution Wednesday, after being found guilty of scamming the other participants.

Alan James Watson pled guilty in September 2011 to one count of wire fraud for a scheme in which he defrauded participants of nearly $40 million by putting their funds in high-risk ventures without their knowledge.

“The pitch Mr. Watson made to investors was a big fat lie, and he...
To view the full article, register now.




Case Information

Case Title

USA v. Watson

Case Number



Virginia Eastern

Nature of Suit

Date Filed

September 2, 2011

Government Agencies

Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.