Walnut Creek, California – A 59-year-old man of Walnut Creek was indicted on wire fraud and security fraud charges by a federal grand jury on Wednesday.
According to a press release from the US Attorney’s Office and the FBI, the accusations against Alan Anderson stem from his plan to use materially false and fraudulent pretenses to get investors to invest to his three companies that were marketed as offering child-friendly internet services.
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.
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.