Popular Valley bar Bottled Blonde has abandoned plans to open a venue in Gilbert following allegations of money laundering and fraud by the landowner.

Aaron Wagner, Founder and CEO of WAGS Capitol, which is behind several Valley businesses, faces 16 federal money laundering and fraud charges related to business funds.

Wagner is accused of persuading investors to give him more than $40 million over several years, believing it would be for restaurant and other business investments.

Wagner allegedly used the money for personal expenses, including exotic cars, personal jets and multimillion-dollar homes.

According to court documents, Wagner would post on marketing channels, using his luxurious lifestyle to show off his fake business success.

In one example, Wagner and co-defendant Michael Mains are accused of taking hundreds of thousands of dollars from Crumbl Cookie locations and making it appear that the funds were paid to “Shift Leads” rather than themselves.

Court documents also show that of the $11 million received from investors to finance the Dirty Bird, Kokonut Island Grill and Hello Sugar locations, “Wagner and Mains diverted approximately $9 million, including down payments on the home, to their own purposes.” personal planes and other features.

Wagner denies the allegations against him, his attorney told ABC15 on Tuesday.

One of the properties purchased by Wagner included the land on which the former Bergies coffeehouse stood in Gilbert; This was where the town was planned to be broken up and rebuilt for a while. controversial Bottled Blonde bar location ABC15 covered it extensively.

Debate continues over Gilbert’s new Bottled Blonde

Following news of the allegations, Evening Entertainment Group issued the following statement to ABC15: “Evening Entertainment Group and Bottled Blonde have withdrawn as proposed tenants at the Aaron Wagner-owned Gilbert project, effective October 2024.”

Bottled Blonde told ABC15 she no longer has any ties to Wagner after backing out of her agreement to be a tenant at the Gilbert property.

We reached out to Gilbert City Council members to find out how these accusations might affect the future of that property and have not heard back. We also reached out to leaders of the Gilbert Historical Museum, who said the future of the site is uncertain.