George David George, 61, of Franklin, pleaded guilty Tuesday, March 8th in connection with a multimillion dollar investment scheme, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. In a hearing before U.S. District Court Chief Judge Kevin H. Sharp, George pleaded guilty to securities fraud, mail fraud, wire fraud and money laundering.
“This defendant cheated dozens of investors out of millions of dollars based on lies and deception,” said Rivera. “This office will continue to target fraudulent investment scams and to prosecute those who defraud investors for their own personal gain.”
During Tuesday’s hearing, George acknowledged being the founder and CEO of WellCity, Inc., a company based in Brentwood that operated a social network devoted to wellness. George admitted that he solicited millions of dollars from WellCity investors by making misrepresentations regarding the revenue and assets of WellCity, misrepresentations regarding collateral to secure investors’ loans, and misrepresentations regarding the status of a supposed initial public offering. George also admitted that he falsely promised investors that their investments were guaranteed and involved no risk. George further acknowledged that he continued to offer supposed shares in WellCity stock even after the Tennessee Securities Division of the Department of Commerce and Insurance issued a Cease & Desist Order prohibiting him from doing so.
George also admitted using funds that had been provided by investors for his personal use, including depositing funds with Gold Strike casino and making massive cash withdrawals.
He faces up to 20 years in prison on each fraud count, up to 10 years on the money laundering count and a fine of up to $5 million. A federal judge ordered him to pay more than $2.3 million in restitution to victims. Sentencing is scheduled for June 10.
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