A Hollywood sex abuse accuser has been indicted by a federal grand jury and charged with securities fraud and wire fraud in connection with a fraudulent investment scheme, authorities said on Wednesday.
A grand jury in Charlotte, N.C., returned the indictment against Michael Egan, formerly of Charlotte, according to a statement from Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina, and John A. Strong, special agent in charge of the FBI’s Charlotte division.
The allegations claim Egan engaged in a fraudulent business scheme aimed at luring investors to enter into various fictitious business and investment contracts from August 2007 to February 2012. The indictment alleges Egan promised to invest his victims’ money in projects such as Halloween- and holiday-themed attractions, land development and investment deals and television shows. Instead of investing the money, Egan allegedly used it to fund his lifestyle.
To persuade his victims to invest, the indictment claims, Egan lied about his financial background, personal assets, professional credentials and investments. He allegedly forged brokerage account statements to reflect favorable balances, when the accounts held little or no money. He also told his victims he was associated with the CEO of a major bank or an employee of a well-known investment mogul and that he owned a percentage of high-profile Vegas hotels and casinos, the indictment claims.
Egan allegedly used the money to pay for personal expenses, including rent, a car lease, groceries, meals at restaurants, medical bills and pet care.
If convicted, Egan faces a maximum sentence of 20 years in prison and a $250,000 fine for the wire fraud count.
Egan made headlines for suing X-Men director Bryan Singer, producer Gary Goddard, and television executives David Neuman and Garth Ancier for allegedly sexually molesting him in 1999 in Hawaii and California. Those allegations — which all four of the formerly accused men deny — were never tested in court because Egan withdrew his lawsuits after his own prior sworn statements emerged that appeared to contradict the allegations in his suit.