Press Release

Alan Anderson Sentenced In Connection With Scheme To Raise Money By Creating False Impression of Profitability and Viability for Companies Marketing Child-Friendly Services

SAN FRANCISCO - Alan Anderson was sentenced today to 88 months in prison and ordered to pay restitution for defrauding investors by lying to them about the profitability of his internet companies, announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation (FBI) Special Agent in Charge Robert K. Tripp. Anderson's sentence was imposed by the Honorable Edward M. Chen, U.S. District Judge.

Anderson, 61, of Walnut Creek, pleaded guilty on Jan. 4, 2024, to two counts of wire fraud. In connection with pleading guilty, Anderson admitted that from Apr. 22, 2010, through May 2018, he was the majority shareholder and CEO of three companies: Imbee.com, a Delaware corporation based in Walnut Creek marketed as a child-friendly social media platform; Fanlala, a California corporation marketed as a service providing internet-based music streaming for children; and Fruit Punch, a California corporation marketed as providing music-streaming service for children. Anderson further admitted that he falsely claimed that the companies were either being acquired or were expanding existing partnerships or contracts with large, well-established companies to induce individuals to invest in his businesses. To further his falsehoods, and to create an appearance of legitimacy for his false claims, Anderson created false contracts, purchase orders, and other documentation that he sent to investors. Anderson created and sent these false documents to investors with the intent to deceive or cheat them.

At sentencing, Judge Chen found that Anderson began lying to investors in September 2011, that his long-running fraud spanned years, and that over the course of the scheme Anderson defrauded investors out of approximately $8.825 million.

A federal grand jury indicted Anderson on October 13, 2021, charging him with four counts of wire fraud and one count of securities fraud.

In addition to the prison term, Judge Chen also sentenced the defendant to a three-year period of supervised release and ordered that he pay restitution in an amount to be determined during a further hearing on October 10, 2024. The defendant will begin serving the prison term on January 6, 2025.

Assistant U.S. Attorneys Christiaan Highsmith and Sailaja Paidipaty are prosecuting the case with the assistance of Mark DiCenzo. The prosecution is the result of a multi-year investigation by the FBI.

Updated September 13, 2024