Gerald Seppala, Steven Brown and James David Williams face conspiracy, money laundering and wire fraud charges. If convicted, they could face decades in prison. Prosecutors claim that the men lied about producing feature-length films and documentaries. In a 2014 civil lawsuit filed against the men, investors claimed they were told their money would go toward films starring Harry Connick Jr., Nicolas Cage and Willie Nelson.

Prosecutors claim that the men made false representations and promises from 2012 to 2016. They allege that the men used the money for personal expenses, paying back previous investors and funding other projects. Williams was accused of using some of the money to purchase a house and car for himself. The civil lawsuit alleges that an individual and two companies lost $10.9 million that was supposed to be invested in four films. The suit claims that the defendants sent falsified financial records to investors showing investments that had not been made.

Brown was arrested in New York City and was freed on $200,000 bail. Williams was arrested in Los Angeles and Seppala was arrested in Wayzata, Minnesota.

Williams Wells, 42, pleaded guilty in federal court in Manhattan to one count of wire fraud and one count of securities fraud, according to the office of U.S. Attorney Preet Bharara. Each of the counts carries a maximum fine of $5 million and a maximum sentence of 20 years in federal prison.

Authorities said that Wells engaged in the scheme from September 2009 until his arrest on October 1, using his firm, Promitor Capital LLC, to obtain investment funds by making false claims that he had consistently achieved positive returns in U.S. equity markets. In reality, according to Bharara, Wells lost money every year, amounting to more than $500,000 in losses over six years. By September 2015, Promitor was managing less than $1,000, according to authorities.

Wells obtained over $1.5 million in investment funds from family members, colleagues and friends, using new investor funds to pay back other investors in a Ponzi-like scheme, according to Bharara.

The charges against Wells were connected to a broad coalition of agencies called the President’s Financial Fraud Enforcement Task Force. Wells’ sentencing will be scheduled for a future date.

Securities fraud and wire fraud are complex and serious charges, and anyone accused of such a crime should seek representation from an experienced criminal defense attorney. The Brill Legal Group has extensive experience representing defendants accused of securities fraud and all types of white collar criminal charges.

Williams Wells, 42, pleaded guilty in federal court in Manhattan to one count of wire fraud and one count of securities fraud, according to the office of U.S. Attorney Preet Bharara. Each of the counts carries a maximum fine of $5 million and a maximum sentence of 20 years in federal prison.

Authorities said that Wells engaged in the scheme from September 2009 until his arrest on October 1, using his firm, Promitor Capital LLC, to obtain investment funds by making false claims that he had consistently achieved positive returns in U.S. equity markets. In reality, according to Bharara, Wells lost money every year, amounting to more than $500,000 in losses over six years. By September 2015, Promitor was managing less than $1,000, according to authorities.

Wells obtained over $1.5 million in investment funds from family members, colleagues and friends, using new investor funds to pay back other investors in a Ponzi-like scheme, according to Bharara.

The charges against Wells were connected to a broad coalition of agencies called the President’s Financial Fraud Enforcement Task Force. Wells’ sentencing will be scheduled for a future date.

Securities fraud and wire fraud are complex and serious charges, and anyone accused of such a crime should seek representation from an experienced criminal defense attorney. The Brill Legal Group has extensive experience representing defendants accused of securities fraud and all types of white collar criminal charges.