Egan, 32, allegedly “engaged in a fraudulent investment scheme by inducing his victims to enter into various fictitious business and investment contacts,” according to the U.S. Attorney’s Office in North Carolina.
After filing civil suits against Singer last spring, Egan dropped his litigation. Singer denied the claims and his attorney, Martin Singer, threatened to sue Egan and his then-attorney, Jeffrey Herman, for malicious prosecution. Another person he accused, Garth Ancier, is pursuing claims of malicious prosecution in a Hawaii federal court.
According to the grand jury indictment, Egan promised that he would invest money in projects like Halloween-themed attractions, land development, investment deals and TV shows but he did not do so. The indictment claims that Egan lied about his financial background and personal assets.
“For example, the indictment alleges that Egan forged brokerage account statements to reflect fraudulent business practices when, in reality, those accounts had no money or a fraction of the purported amount,” according to the U.S. attorney.
Federal authorities allege that Egan used the money to fund his lifestyle, including paying for rent, medical bills, groceries and restaurants.
If convicted, Egan faces a maximum of 20 years in prison and a $5 million fine for the securities fraud count and a 20-year prison term and $250,000 fine for the wire fraud count.
Calls to contact numbers for Egan in court records were not immediately returned.