The chief executive officer of three internet companies was sentenced to more than seven years in prison for lying about their profitability and defrauding investors, prosecutors said.
Alan Anderson, 61, of Walnut Creek bilked investors out of about $8.8 million in a scheme that began in 2011, according to the U.S. Attorney’s Office for the Northern District of California.
He was was sentenced to 88 months in prison and ordered to pay restitution.
Anderson was the majority shareholder and CEO of Imbee.com, marketed as a child-friendly social media platform; Fanlala, described as an internet-based music streaming service for children; and Fruit Punch, billed as a music-streaming service for children, prosecutors said.
To persuade investors to put money into the companies, Anderson falsely claimed that they were being acquired or were expanding existing partnerships or contracts with large, well-established companies, prosecutors said.
