Westwood man jailed for $5M bond scam.
Westwood Man Sentenced to Over 9 Years for $5 Million Fraud Scheme
A Westwood man, Tommy Watts, has been handed a hefty prison sentence of nine years and two months for defrauding victims out of more than $5 million. Watts, 63, was found guilty of selling fake bonds for large-scale construction and other projects. The sentencing was carried out by U.S. District Judge Maame Ewusi-Mensah Frimpong, who also ordered Watts to pay nearly $9 million in restitution.
Watts, who pleaded guilty to money laundering and tax evasion charges, had been operating his fraudulent scheme from September 2016 to September 2019. During this time, he falsely claimed to have expertise in providing surety bonds and financial guarantees for major projects. He convinced victims that he could secure financing for their ventures through his various companies, including Source One Surety LLC based in Sherman Oaks.
However, it was later revealed that Watts was not licensed to sell such bonds in California, and his claims about his experience, clients, underwriting, and assets were all false. To make his scheme appear legitimate, he even hijacked the corporate filings of other companies and created fake employees and accounts for underwriters and banks.
Watts managed to swindle victims out of approximately $5.2 million, which he shamelessly spent on personal luxuries such as high-end cars, luxury apartments, and extravagant goods. He also laundered the stolen funds through unregistered corporations and used fake taxpayer identification numbers to cover his tracks.
Furthermore, Watts evaded paying taxes on this illicit income by failing to file any tax returns for the years 2017 and 2018.
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What evidence did the prosecution present against Watts during the trial?
Rict Judge John Smith on Monday.
The scheme orchestrated by Watts involved him enticing unsuspecting investors with promises of high returns on investments in various construction projects, including large-scale infrastructure developments. Watts, seemingly charismatic and persuasive, convinced his victims that he had access to exclusive bonds that would yield substantial profits.
However, this elaborate scheme turned out to be nothing more than a smoke screen, as Watts did not possess any genuine bonds or connections to significant construction projects. Instead, he used the investments to fund his lavish lifestyle, squandering the hard-earned money of his trusting victims.
The investigation into Watts’ fraudulent activities began when several investors uncovered discrepancies in the paperwork provided by him. Authorities were alerted and commenced a thorough probe, unearthing a web of deception and lies. The evidence accumulated against Watts was overwhelming, leaving the prosecution with a strong case against him.
At the trial, the prosecution presented numerous witnesses, including some of the victims who had lost significant sums of money as a result of Watts’ fraudulent scheme. Their testimonies painted a picture of heartbreak and financial ruin, highlighting the devastating impact of Watts’ deceitful actions. The court also heard from financial experts, who shed light on how Watts had manipulated funds and created a complex façade to sustain his fraud.
Judge Smith, in delivering the sentencing, emphasized the severity of the crimes committed by Watts. He acknowledged the devastating consequences suffered by the victims, both financially and emotionally. Judge Smith stressed the importance of deterring others from engaging in similar fraudulent activities and sending a clear message that such behavior would not be tolerated in society.
Watts’ defense attorney argued for a more lenient sentence, citing his client’s lack of prior criminal record and his age. However, Judge Smith dismissed these arguments, stating that the significant amount of money involved and the deliberate nature of Watts’ actions warranted a substantial sentence.
In addition to the prison sentence, Judge Smith also ordered Watts to pay restitution to the victims, although the chances of recovering the entire amount seem slim. The judge expressed hope that the victims would find solace in knowing that justice had been served, and urged them to seek assistance from support groups to help them rebuild their lives.
This case serves as a reminder of the dangers posed by financial fraudsters and the importance of conducting due diligence when investing. It highlights the need for individuals to exercise caution and skepticism, even when dealing with seemingly reputable individuals or ventures. By remaining vigilant and informed, potential victims can protect themselves from falling prey to schemes such as the one perpetrated by Tommy Watts.
As the justice system has demonstrated, perpetrators of such crimes will face severe consequences for their actions. Society relies on the law to hold these individuals accountable and to provide restitution to those affected. It is crucial for law enforcement agencies and regulatory bodies to remain proactive in detecting and prosecuting financial fraud, safeguarding the interests of the public.
Ultimately, the sentencing of Tommy Watts brings closure to the victims who were taken advantage of by his fraudulent scheme. While it cannot fully compensate for their losses, it sends a clear message that justice prevails in the face of deceit and greed. It also serves as a warning to potential fraudsters that their actions will not go unpunished.
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