Two guys allegedly ran a 'Hamilton' tickets Ponzi scheme that netted $81 million
Was anything more inevitable than a Hamilton Ponzi scheme?
The Securities and Exchange Commission charged two men in New York with fraud on Friday for running an $81 million Ponzi scheme that promised to make money reselling tickets to the sold-out Broadway musical.
The Ponzi masterminds, Joseph Meli and Matthew Harriton, allegedly promised 125 investors that they would make at least a 10 percent profit from a scheme to buy and resell tickets to Hamilton and other in-demand shows, including an Adele concert.
SEE ALSO: The 'Hamilton' soundtrack surpassed a major milestone
Instead, Meli and Harriton spent up to $2 million on jewelry, private school and camp tuition and gambling. Plus, they had to use at least $48 million to keep the Ponzi scheme going and pay off earlier investors.
The Ponzi schemers even said they had an agreement with a Hamilton producer to buy 35,000 tickets to the show. Investors were told they would get their money back within eight months.
This Hamilton / Adele ticket ponzi scheme that busted by the SEC is crazy. That works at to be over $600k per investor. pic.twitter.com/8u4EQLVApP
— Julia La Roche (@SallyPancakes) January 27, 2017
The SEC filed a complaint on Friday, alleging the scheme went back at least to 2015.
SEE ALSO: Lin-Manuel Miranda really wants you to donate to Planned Parenthood
“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,” Paul G. Levenson, director of the SEC’s Boston office, said in a statement.
Investors were also promised they'd get 50 percent of any profits that were left over after everyone involved was repaid.
The evidence suggests they engaged in speculation...
