Mark Iandolo Sep. 9, 2016, 12:51pm


WASHINGTON (Legal Newsline) — Donald Watkins and his companies have been charged with defrauding professional athletes and other investors out of millions, the Securities and Exchange Commission (SEC) has announced.

   

The SEC’s complaint, filed in federal district court in Atlanta, charges that Watkins and his companies, Watkins Pencor LLC and Masada Resource Group LLC, lied to investors by alleging their funds would be used to support waste-to-energy ventures. According to the SEC, their funds were instead spent on Watkins' girlfriend and other personal expenses, including alimony, past due taxes and credit card bills.

 

Watkins allegedly also misled investors by saying a multibillion dollar deal was imminent. Watkins purportedly told them that Waste Management Inc., a large, international waste treatment company, was close to acquiring Watkins Pencor, Masada and related companies.

The SEC says interest from Waste Management Inc. never moved past an initial meeting. The agency believes Watkins told investors negotiations were progressing and the acquisition was looming for more than a year after the initial meeting.

 

“We allege that Watkins duped investors into believing that there was a lucrative transaction on the horizon, when in fact there was none,” said Walter Jospin, regional director of the SEC’s Atlanta Regional Office.

 

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