Police: Springdale Man Spent Investment Funding On Booze, Strip Clubs
ROGERS (KFSM) — A Springdale man is accused of defrauding his company’s investors by spending their money on alcohol and strip clubs, then falsely blaming a former employee of “fixing the books” to keep investors from finding out, according to a probable cause affidavit.
Adam Braden Sharp, 41, was arrested Friday (Feb. 9) in connection with computer fraud and filing a false report of criminal wrongdoing — both felonies.
Sharp is the registered agent of Social Automotive Management Services, an online shopping tool for car-buying based in Rogers that also does business as Fenders.Cars, according to its website and information from the secretary of state’s office.
Sharp initially told Rogers police he fired his bookkeeper in December 2017 after an audit found she spent roughly $35,000 in unauthorized transactions on his company’s debit card, according to the affidavit.
However, the bookkeeper later provided police with text messages from Sharp, who told her to “fix the books” by changing transactions for “liquor store” and “strip club” to “income,” according to the affidavit.
The bookkeeper said Sharp likely asked her to alter his company’s financial data after an investor — who was suspicious Sharp was embezzling the funds — requested a detailed expense report.
During an interview with police, Sharp estimated he spent roughly $120,000 in personal expenses over a 15-month period — mainly on purchases his investors would find inappropriate, according to the affidavit.
Instead of taking a paycheck, Sharp said he spent everything out of the company’s operating account.
Sharp also said he spent some of the investment funds on travel and food for him and his wife.
He said he was embarrassed about admitting to investors that he spent some of the money on “adult facilities,” according to the affidavit.
Sharp added that he could see how some of the texts with his bookkeeper could seem “super shady.”
Sharp is free on a $7,500 bond. He has a hearing set for March 19 in Benton County Circuit Court.