Yesterday, Tommy Lester Watts, 64, was sentenced to 110 months in federal prison for defrauding individuals out of over $5 million and evading the payment of more than $1.2 million in taxes. Watts, using various aliases, claimed to be able to underwrite large-scale project bonds between September 2016 and September 2019 according to the U.S. Attorney's Office, Central District of California.
To carefully lure investors into his scam, Watts positioned himself as a seasoned bonds and financial guarantees expert. He operated under fake names such as "Michael Nesbeth," "Michael Kent," and "Alex Mason," using his companies, including the Sherman Oaks-based Source One Surety LLC, to make false claims of underwriting bonds worth millions or billions of dollars as noted by KTLA.
Watts, who scammed victims out of approximately $5,238,344, used the proceeds to fund a lavish lifestyle. He spent the money on luxury items such as classic and high-end cars, expensive apartments, and designer goods. Moreover, Watts laundered these funds through unregistered corporations using false taxpayer identification numbers to conceal his income from the IRS from 2017 to 2019 in accord with U.S. Attorney's Office.
As a result of his actions Watts has been required to pay a sum of $8,995,879 in restitution and forfeit nearly $60,000 in assets, a Mercedes-Benz car, and a Subaru SUV. He has also committed to repay the IRS a total of $4,226,535, that includes at least $1,863,035 for his tax liabilities as per KTLA.
