Gilbert Bottled Blonde deal collapses; landowner arrested for $40M fraud scheme

GILBERT, AZ (AZFamily) — A popular Valley bar and nightclub just pulled out of plans to open a new spot in Gilbert after the deal collapsed due to a $40 million fraud scheme.

The FBI arrested the landowner for money laundering and fraud after they say Aaron Wagner and his partner Michael Mains defrauded investors out of millions of dollars.

According to the federal indictment, Wagner and Mains convinced investors to give them $40 million, promising to fund dozens of restaurants. Instead, federal investigators said they used the money for down payments on multimillion-dollar homes in Scottsdale and Montana, property to build a new nightclub in Scottsdale and an $8 million private plane.

Wagner also bought the Clare House property, the second-oldest building in Gilbert. This sparked controversy over concerns the building would be demolished to build the Bottle Blonde location.

Evening Entertainment Group said Bottled Blonde withdrew as a tenant of Wagner's property in October.

Julia Taggart, an activist who has been fighting to save the building, said this now gives them more time to salvage the historic building.

"It is very much up in limb, but it will stay there for now," said Taggart. "I would like to see if it does get bought by a new business owner and that business owner restores it for their business or helps move it to the Gilbert Historical Museum.

Wagner's attorney sent Arizona's Family a statement saying, "Aaron denies the allegations that have been made against him. He looks forward to defending himself in court."