AUTAUGA COUNTY, Ala. (WSFA) - A Mississippi resident pleaded guilty to securities fraud in Autauga County last week.
Harry James Walker pleaded guilty to securities fraud for fraudulent investments related to a water bottling plant.
Autauga County District Attorney Randall Houston says between June 2012 through July 2013, Walker, who held himself out as the owner of water bottling plant located in Autauga County, sold promissory notes and shares of stock in companies he claimed were associated with the plant, including; Global First, Inc., Autauga Water Bottling, Inc., and Atagi, Inc.
The investigation revealed that Walker was not authorized to sell the shares of stock and, as part of his solicitations, he overstated the value of the company.
Investors were told that the money would be used to operate the water bottling plant, but instead Houston says investor funds were diverted to Walker’s personal expenses and to expenses related to companies associated with Walker.
Walker was ordered by Honorable Circuit Court Judge Sibley G. Reynolds to make complete restitution of $607,278 to the victim investors. Walker also consented to a permanent bar from participating in the securities industry within the state of Alabama.
A sentencing hearing will take place in November. According to Alabama law, securities fraud is a Class B felony, punishable by not less than two years, but no more than 20 years in prison, and a fine not to exceed $30,000.