Joseph Meli and Matthew Harriton—Concert and Broadway Ticket Ponzi Scheme
Joseph Meli and Matthew Harriton Allegedly Ran a $81 Million New York City Ponzi Scheme Involving Investor Cash to Buy and Resell Tickets to Shows such as the Broadway Smash-hit Hamilton and Adele Concerts
Joseph Meli and Matthew Harriton allegedly ran a New York City Ponzi scheme involving investor cash to buy and re-sell tickets to shows such as the Broadway smash-hit Hamilton and to Adele Concerts, according to recent SEC Documents currently under review by attorneys Jason Kane and James Booker.
Meli and Harriton allegedly raised over $81 million from at least 125 investors in 13 states, said SEC Documents report.
Joseph Meli and Matthew Harriton, who are currently facing fraud charges from the SEC, allegedly made misrepresentations to investors claiming that all of their cash would be merged to buy big blocks of tickets which would be resold at a profit to generate high returns for investors, said SEC Documents report.
The operation allegedly started to show telltale signs of a Ponzi scheme.
For example, the majority of investor funds were allegedly used for undisclosed purposes, mainly by allegedly using money from new investors to make Ponzi payments to prior investors, the SEC notes.
Investors also allegedly received written contracts which promised full repayment of principal plus a 10% annualized profit, to be paid in less than one year from investment, according to the SEC Complaint.
What is more, investors also were allegedly promised 50% of any profits from the ticket re-sales that were still around after investors received their return of principal and 10% return, the Complaint notes.
Joseph Meli and Matthew Harriton’s scheme allegedly took such serious steps as to make misrepresentations that a deal had been made with the producer of Hamilton to purchase 35,000 tickets to the musical, the SEC Documents state.
The SEC’s Complaint further alleges that investor money was purportedly paying portions of that cost with the return on investment which was promised within eight months.
The SEC, however, also alleges that no such agreement or purchase ever happened.
What is more, Joseph Meli and Matthew Harriton allegedly diverted almost $2 million for personal expenses such as jewelry, private school and camp tuition, and casino payments, the SEC states.
Paul G. Levenson, Director of the SEC’s Boston Regional Office, made the following statement:
“As alleged in our complaint, Meli and Harriton raised millions from investors by promising big profits from reselling tickets to A-list events when in reality they were moving investor money in a circle and creating a mirage of profitability.”
The Peiffer Wolf Carr & Kane securities lawyers are currently investigating Joseph Meli and Matthew Harriton’s alleged Ponzi scheme.
Joseph Meli and Matthew Harriton, Along with Their Four Purported Ticket Reselling Businesses Named Advance Entertainment, Advance Entertainment II, 875 Holdings, and 127 Holdings Facing, are Facing Disgorgement of Ill-gotten Monetary Gains Plus Interest and Penalties
Joseph Meli and Matthew Harriton, along with their four purported ticket reselling businesses named Advance Entertainment, Advance Entertainment II, 875 Holdings, and 127 Holdings Facing disgorgement of ill-gotten monetary gains plus interest and penalties, according to SEC Documents presently being examined by attorneys Jason Kane and James Booker.
The Complaint is also seeking disgorgement of alleged “ill-gotten monetary gains plus interest and penalties.”
As opposed to representations by Meli and Harriton, only a small amount of investor funds were used to make payments to entities with any apparent connection to the ticket reselling business, the Complaint states.
What allegedly happened instead was at least $48 million of incoming funds from apparent investors was used to repay and provide purported investment returns to other investors, thereby creating the illusion of a profitable, ongoing investment, the Complaint notes.
This allegedly allowed Meli and Harriton to raise even more money from investors and to fraudulently use investor money for personal benefit.
What is more, Meli’s wife and another company are also allegedly being named as relief defendants in the Complaint for the reason of recovering investor funds which they are allegedly holding, the Complaint notes.
Meli and Harriton may also face criminal charges from the U.S. attorney for New York’s Southern District, the Complaint states.
Securities Lawyers Investigating
The Peiffer Wolf Carr & Kane securities lawyers often represent investors who lose money as a result of Ponzi schemes and are currently investigating Joseph Meli and Matthew Harriton’s alleged Ponzi scheme. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of Joseph Meli and Matthew Harriton’s alleged Ponzi scheme may contact the securities lawyers at Peiffer Wolf Carr & Kane, Jason Kane or James Booker, for a free no-obligation evaluation of their recovery options, at (585) 310-5140 or via e-mail at firstname.lastname@example.org or email@example.com.