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Craig Carton, Sports Radio Host, Is Accused of Ponzi Scheme

Craig Carton, a co-host of a fresh York day sports-radio program “Boomer & Carton,” was caught on Wednesday morning hours by the F.B.I. on charges that he helped orchestrate a deceptive multi-million-dollar ticket-reselling program.

Craig Carton Is Accused of Ponzi Scheme

Craig Carton Is Accused of Ponzi Scheme

Craig Carton Is Accused of Ponzi Scheme

Federal government prosecutors in Manhattan accused Mr. Carton and another accused of owning a kind of Ponzi structure where they solicited opportunities from subjects, including a Manhattan hedge account, that both men said they might use to trade concert tickets. The amount of money was instead used to pay personal bills and earlier shareholders.

Mr. Carton, 48, of Manhattan, encounters charges of securities fraudulence, wire fraudulence and conspiring to commit those offenses, relating to a legal complaint registered in Federal Area Judge in Manhattan.

Mr. Carton searched for the investments this past year around enough time he also accrued an incredible number of dollars’ value of gambling bills to casinos and other people, the Securities and Exchange Fee said in a civil grievance filed on Thursday.

Mr. Carton co-hosts the “Boomer & Carton” show with the retired quarterback Boomer Esiason on the brand new York radio stop WFAN. Once the duo substituted the have a discussion show number Don Imus in 2007, the decision of Mr. Carton brought up some eyebrows; as a bunch on “The Shirt Guys,” a day discussion show in Trenton, Mr. Carton was recognized to once in a while provoke controversy.

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The station’s owner, CBS Radio, said it experienced suspended Mr. Carton pending a study and was cooperating with the specialists.

The acting USA legal professional in Manhattan, Joon H. Kim, said Mr. Carton and his co-defendant, Michael Wright, “deceived shareholders and raised huge amount of money through misrepresentation and outright is.”

William F. Sweeney Jr., the top of the F.B.I.’s NY office, added that both men tried out to “pay back traders with money that could eventually become future credit debt.”

Mr. Carton and Mr. Wright were each purchased released on $500,000 connection by a federal government magistrate judge, Andrew J. Peck. As the reading concluded, Judge Peck remarked, “Start, the radio group in the courtroom today is absolve to move to their other business.”

Neither Mr. Carton nor his legal professionals taken care of immediately reporters’ questions following the reading. As Mr. Carton kept the courthouse, putting on a white sweatshirt with the hood taken down, he was swarmed by camera crews and a more substantial group of reporters, who chased him as he zigzagged down the stop.

Mr. Wright’s law firm, Jonathan Davidoff, said on Wed that his customer denied “any engagement in any legal activity” and seemed onward to “his innocence being proven.”

The S.E.C.’s grievance says Mr. Carton solicited investment funds in companies that he falsely said had usage of millions of us dollars’ value of concert seat tickets at face value and would resell large blocks of seat tickets for substantial income.

Mr. Carton provided to 1 investor fake contracts for entities that he or a co-employee handled to buy an incredible number of dollars’ worthy of of seat tickets to forthcoming concerts by Katy Perry, Justin Bieber, Roger Waters, Metallica and Barbra Streisand, the S.E.C. said.

The hedge account that provided cash to Mr. Carton had not been discovered by the government bodies. But in Dec 2016, a finance maintained by Brigade Capital Management registered a financing assertion with NY State to track record a arrears owed by two firms that the S.E.C. problem says Mr. Carton governed.

Aaron Michael, the principle compliance official for Brigade, which handles more than $18 billion in property, dropped to comment. The hedge account cited in the problem “had no preceding experience in solution purchases or resales,” the S.E.C. said.

The S.E.C. said that Mr. Carton and the affiliate, Joseph G. Meli, collectively misappropriated at least $3.6 million from two buyers; and this Mr. Carton also misappropriated another $2 million in one of those buyers.

Mr. Meli was also called as a accused in the S.E.C. issue.

In January, national prosecutors in Manhattan registered unlawful charges against Mr. Meli, accusing him of defrauding traders of huge amount of money in a Ponzi structure built around a reselling design involving seat tickets to the Broadway musical “Hamilton” and other high-profile occurrences.

Mr. Meli pleaded not liable to prospects charges; his attorney at law, Daniel J. Fetterman, dropped to touch upon Wednesday.


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