UPPER SADDLE RIVER, N.J. — Michael Wright of Upper Saddle River along with popular WFAN radio host Craig Carton of New Rochelle, N.Y., were arrested and charged with several counts of fraud in a multimillion-dollar ticket Ponzi-scheme, authorities said.
The pair and one more referred to as "CC-1" in documents worked together to "induce investors to provide them with millions of dollars — based on representations that the investor funds would be used to purchase blocks of tickets to concerts — which would then be re-sold on the secondary market," Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation said.
Carton, of "Boomer and Carton," and CC-1 supposedly had access to those blocks of tickets based on agreements that CC-1 had with a company that promotes live music and entertainment events, and that Carton had with a company that operates two arenas in the New York metropolitan area, authorities said.
An investigation found that neither company had any agreement with Carton, Wright, CC-1 or any entity associated with them, Kim said.
The three misappropriated money received through the scheme to pay off personal debts or prior investors as part of the Ponzi-like scheme, according to Kim.
The conspiracy count carries a maximum sentence of five years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense, authorities said.
The securities fraud count carries a maximum sentence of 20 years in prison and a maximum fine of $5 million, or twice the gross gain or loss from the offense, Kim said.
The wire fraud count carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense, according to Kim. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
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