FORT MYERS, Fla. (WINK) — A high-stakes legal battle over millions of dollars caught in the middle of multiple claims of investment fraud is heating up in Southwest Florida. WINK Investigates uncovered a civil court deposition that may provide key answers into a mysterious money transfer that has taken center stage in a series of lawsuits against a Fort Myers financial advisor.
Local seniors who won civil judgments against former financial advisor Michael Watkins have spent months trying to collect what they are owed. So far, civil courts have ordered nearly $4 million to be paid back to ten former clients. Three other former clients have pending lawsuits that have yet to result in judgements.
Now, under oath, Watkins has admitted that he transferred $820,000 to his own former attorney specifically to shield it from creditors who were hoping to settle with his victims.
For 40 years, one local woman worked as a private nurse in Southwest Florida. Her routine consisted of grueling 60-hour workweeks, all fueled by the dream of a quiet, stable retirement. Eight years ago, she met Michael Watkins, a man she described as appearing “very professional,” carrying a distinct attaché case.
Trusting his polished demeanor, she decided to hand over her life savings to secure her future.
“I gave him $75,000 initially,” she recalled.
For years, she received regular interest statements and had few concerns, leading her to invest even deeper. “I gave him another check, it will be two years in September, for another $35,000.”
By late last year, however, the illusion shattered. She discovered her money was never placed into standard investments. Instead, Watkins had allegedly diverted her funds directly into an account for his own company, Radiant Private Investment LLC.
She would later learn that Watkins had no license to sell securities in the state of Florida. He also carried an extensive 15-year criminal history in Lee County, including mugshots spanning multiple charges for DUIs, battery, and domestic violence. Watkins is currently behind bars serving time for a probation violation.
“I can’t recoup that money I saved for years,” the former nurse said. “It just can’t be recouped.”
She did not want to be identified because she said she feels ashamed she fell for it. She told us even her closest friends and relatives do not know about what she lost.
Tracking the Hidden $820,000 Paper Trail
The local nurse is far from alone. More than a dozen former clients have filed civil lawsuits against Watkins, with 10 already securing judgments in their favor.
However, when their legal counsel tried to collect the $4 million in collective judgments, attorney Matthew Schwartz discovered a mysterious $820,000 transfer initiated in November of last year. The money had been sent directly to a trust account held by Watkins’ then-attorney, Scott Faden.
Faden himself is facing distinct legal trouble; he was suspended from practicing law for three years in February following 17 unrelated client complaints.
“It seems to me that it was done in an effort to avoid judgment creditors,” Schwartz stated.
Schwartz recently conducted a sworn deposition of Watkins from inside the Lee County Jail, an interview that has now become a matter of public record. During the deposition, Watkins admitted to wiring $820,000 of investor funds—alongside $130,000 of his personal money—directly to Faden.
When Schwartz questioned Watkins under oath about whether the transfer was an explicit attempt to evade creditors, Watkins replied:
“Yes. He told me that a portion of it, you know, even if you have garnishments or whatever you’re entitled to some accounts and some money and that he was to figure that out.”
Watkins testified under oath that the strategy was actively encouraged by Faden and a second attorney he was working with at the time. Further complicating the paper trail, Watkins claimed he cannot access his official business emails to verify correspondences, alleging that his ex-wife hacked and locked his account.
Threats of Defamation and FBI Involvement
When former clients tried to track down the missing funds themselves, the response was hostile. The anonymous private nurse shared text messages with WINK Investigates detailing her confrontation with Faden regarding the missing money.
Instead of offering a denial, Faden responded with a legal threat.
“He threatened me,” she said. “He said, ‘Don’t you accuse me of doing anything illegal. I’ll sue you for defamation.’ She told us, “He knew I was right.”
The scope of the case may soon expand beyond civil court. Multiple former clients have confirmed receiving correspondence from the Federal Bureau of Investigation (FBI) indicating an active inquiry into Watkins’ financial activities. Following standard agency protocol, the FBI has declined to officially confirm or deny the existence of an ongoing investigation.
What Comes Next
WINK Investigates reached out to Scott Faden multiple times for comment regarding the asset transfer and the allegations raised in Watkins’ deposition, but he has not responded to our inquiries.
A local judge has officially ordered Faden to appear in civil court on August 3rd to provide a full, line-item accounting for every dollar of the $820,000 wire transfer. If he fails to do so, he faces a potential charge of contempt of court.
For the clients who lost their safety nets, the upcoming hearing represents a vital step toward transparency, even if the financial damage cannot easily be undone.
“It’s serious to get to a certain age and you just don’t have that money you rely on to continue on,” the former nurse said. “It devastated their lives. We want some justice.”
WINK Investigates will continue to follow up on this case.
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