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WellCity CEO Admits Fraud

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Posted at 10:25 AM, Mar 09, 2016
and last updated 2016-03-09 11:25:51-05

Federal prosecutors said a Franklin businessman has pleaded guilty to a multimillion dollar investment scheme that cheated dozens of people out of money.

Officials said 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 was the founder and CEO of WellCity, a Brentwood-based company that operated a social network devoted to wellness.

Federal prosecutors said 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.