Federal prosecutors say an Ethel businessman accused in a $3.5 million investor fraud scheme spent thousands of dollars at Baton Rouge fine dining restaurants and on LSU sports tickets, while other money was spent at various casinos, Victoria’s Secret and a Disney resort.
U.S. Attorney Walter Green says 55-year-old Bryan Addington was indicted on five counts of mail fraud and one count of aggravated identity theft.
According to the indictment, Addington engaged in the scheme between January 2010 and April. He’s accused of falsely leading victims to believe that their money would be invested in real estate and land, insurance products and stock, and would be used to purchase insurance policies. Addington allegedly represented the investments were safe and would yield good returns, and would bring guaranteed returns in some cases. He also hid from his victims that the Financial Industry Regulatory Authority had permanently barred him from acting as a broker or otherwise associating with firms that sell securities to the public.
Addington spent his victims funds at restaurants including Ruth’s Chris Steak House and Galatoire’s Bistro, according to the indictment. Along with spending some of the funds on himself, he also used some to make payments to other victim investors, Green says.
The matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, and the Louisiana Office of Financial Institutions, in coordination with the Louisiana Department of Insurance and Louisiana State Police. It is being prosecuted by Assistant United States Attorneys Ryan Rezaei and Ryan Crosswell.
