By Michael Gordon, mgordon@charlotteobserver.com
Originally published by the Charlotte Observer
CHARLOTTE, N.C. — A former Charlotte resident, who earlier this year accused a group of Hollywood executives of molesting him when he was a teenager, has been indicted on charges that he defrauded investors.
Michael Francis Egan III, 32, faces up to 40 years in prison and a $5.25 million fine, if convicted, according to the office of U.S. Attorney Anne Tompkins of Charlotte.
Public records indicate that Egan has lived in Charlotte and Gastonia.
Earlier this year, Egan sued four top entertainment industry executives, claiming they sexually abused him when he was a teen model. His targets included “X-Men” director Bryan Singer, whom Egan accused of molesting him in Hawaii in 1999.
The time had passed for criminal charges to be filed in any of the cases, and Singer denied the allegations. Egan later dropped the lawsuits, though a judge in Hawaii gave him the option in August to refile the suit against Singer at a later date.
In the indictment handed down in Charlotte this week, Egan is accused of a five-year financial scheme in which he attracted investors by lying about his assets – Egan claimed he owned percentages of well-known hotels and casinos in Las Vegas, among other claims – and his connections to banking executives and investment moguls.
He promised customers returns from investments in Halloween-theme attractions, television shows and land development. Instead, Egan used the capital to pay rent, buy groceries, underwrite medical bills and restaurant tabs, and take care of his pets, prosecutors say.
Egan hid his activity, investigators say, by creating account statements to reflect fraudulent balances.
The indictment charges him with securities fraud and wire fraud. He is to appear before U.S. Magistrate Judge David Cayer on Jan. 13.
According to public records, a Mecklenburg County court in 2011 leveled a $160,000 judgment against Egan in a complaint filed by a Cornelius couple. It remains unpaid.
— RESEARCHER MARIA DAVID CONTRIBUTED.