WellCity CEO admits fraud

(Graphic: WKRN)

NASHVILLE, Tenn. (AP) – Federal prosecutors say a Franklin businessman has pleaded guilty to a multimillion dollar investment scheme that cheated dozens of people out of money.

Officials say 61-year-old George David George pleaded guilty to securities fraud, mail fraud, wire fraud and money laundering this week in a Nashville federal court. George is the founder and CEO of WellCity, a Brentwood-based company that operated a social network devoted to wellness.

Federal prosecutors say George admitted to lying to investors about the company’s revenue, assets and the status of a supposed initial public offering. They also said he acknowledged using investor funds for personal use, which included depositing money with Gold Strike casino and making massive cash withdrawals.

He will be sentenced in June.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s