A federal grand jury indicted a 59-year-old Walnut Creek man on Wednesday on charges of wire fraud and securities fraud.
The charges against Alan Anderson are in connection with his scheme to use materially false and fraudulent pretenses to induce investors to make contributions to his three businesses that were marketed as providing child-friendly internet services, according to a news release from the U.S. Attorney's Office and the FBI.
Prosecutors allege that from 2010 to 2019, Anderson raised money for his companies by making false representations and creating false documents to support his bogus claims.
According to prosecutors, Anderson owns Imbee Inc., a Delaware corporation based in Walnut Creek marketed as a child-friendly social media platform; Fanlala, a California corporation marketed as a service providing internet-based music streaming for children; and Fruit Punch, a California corporation marketed as providing music-streaming service for children.
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The charges include four counts of wire fraud and one count of securities fraud.
If convicted, each count of wire fraud carries a maximum sentence of 20 years in prison and a maximum $250,000 fine. The securities fraud charge carries a maximum 20 years of imprisonment and a $5,000,000 fine.