Craig Carton, the famous host of the New York sports radio program Boomer & Carton, was arrested on Wednesday in a concert ticket scheme to pay gambling debts. Law enforcement claims Carton engaged in a variety of white collar crimes to pay off gambling debts.
The longtime WFAN host is accused of defrauding investors, running a Ponzi scheme, and selling millions of dollars in concent tickets, according to regulators. Carton is alleged to have sold tickets to concerts of big name acts like Katy Perry, Justin Bieber, Barbra Streisand, and Adele.
The official charges against Craig Carton are conspiracy, wire fraud, and securities fraud. Those are serious charges which could land the loudmouth radio host in prison, if he is convicted.
Craig Carton’s Alleged Ticket-Resale Scheme
Though prosecutors would not give the name of the hedge fund involved in the Ponzi scheme, an anonymous source told Bloomberg News that it was Brigade Capital Management. The same person said that less than half of a $10 million credit facility provided by the fund had been tapped. The fund itself seized some of the cash to hold as collateral, which limited potential losses. Paul Scarpetta, a spokesman for Brigade Capital at Sard Verbinner & Co., declined to comment on the case.
This is not the first arrest in a growing investigation into the ticket-resale industry. Craig Carton is the latest name and biggest name implicated. Carton is the host of the 10-year old WFAN radio show with former NFL quarterback Boomer Esiason. This past winter, Boomer & Carton ranked first in the New York City area among men ages 25 to 53 — the key demographic for a sports radio show — according to Arbitron’s winter ratings book. Esiason, the 14-year former NFL veteran who also does broadcast work for CBS SPorts, Westwood One, and Showtime, is not accused of any wrongdoing.
Policing Ticket Resellers
In recent years, lawmakers and federal attorneys have placed the ticket-selling industry, which has light regulation. Several entertainers have taken issue with how the ticket-reselling industry wroks, while consumers have complained about misleading advertisments and outright scams. Some entertainers, such as Bruce Springsteen, have called for more robust verification methods be used to assure that ticket brokers find it harder to purchase access to a show.
New York Attorney General Eric Schneiderman recently ended a 3-year investigation in sports and concert ticker resellers. Schneiderman said his goal was to protect consumers better than in the early days of online ticket resellers. Like stage performers, many sports teams now limit access to their tickets.
Michael Wright of S Group NYC
Craig Carton’s alleged accomplice in this particular ticket-resale scam is Michael Wright, a 41-year old resident of Upper Saddle River, New Jersey. Wright is the C.O.O. of S Group NYC, which manages the Sapphire strip clubs found in Manhattan. According to a criminal complaint filed in a Manhattan federal court. In the same complaint, a third co-conspirator is noted, but has not been named.
Joseph Meli Indictment
The Securities and Exchange Commission (SEC) sued Craig Carton on Wednesday, along with Joseph Meli, a 43-year old New York City-based businessman. The SEC claims that Carton and Meli are involved in fraud. The SEC lawsuit also notes a third accomplice, who has not been identified.
Joseph Meli was charged by federal prosecutors in January 2017 in a separate alleged ticket-reselling fraud cause. In that case, Meli is alleged to have resold purported tickets to the smash Broadway musical Hamilton. In the earlier case, Mr. Meli denies wrongdoing.
Craig Carton’s Gambling Addiction
Craig Carton’s involvement in the ticket-reselling scam is said to have been spurred on by mounting debts. It is thought that the radio broadcaster and strip club operator’s debts stem from problem gambling that occured in mid-2016. At one time, Carton complained that he owed $2.5 million to a casino, which froze his account.
Allegedly, Carton also ran up a gambling debt of $825,000 to a single individual. According to prosecutors, a need to repay these debts led to Craig Carton’s involvement in high-dollar ticket reselling schemes. Investigators appear to have records of Carton discussing major concerts for which he planned to resale massive amounts of tickets.
Carton’s Ticket Sales Texts
One text Carton allegedly sent to an unidentified co-conspirator on Oct. 12, 2016 said, “Guys. I’ve done it. One investor ready committed $10m liquid and $40m LOC [line of credit] with $50m more if needed. I need some info. List of shows we can 100% prove access to tickets.”
Joon Kim and Paul Levenson Discuss Carton’s Charges
Several officials castigated Craig Carton for his supposed role in the scheme. Joon Kim, the Acting Manhattan US Attorney in charge of the case, said at a New York press conference, “Behind all the talk, the Wright and Carton show was just a sham, designed to fleece investors out of millions ultimately to be spent on payments to casinos and to pay off other personal debt.”
Paul Levenson, who serves as the SEC’s Boston regional office’s director, said of Carton’s plots, “Investors were lured with promises of big profits from resales of A-list concert tickets, but little did they know their money was being used to cover Carton’s gambling debts.”
Boomer Esiason Discusses Carton’s Arrest
On the Boomer and Carton Show on Thursday, longtime broadcast partner Boomer Esiason discussed the case. As Phil Sims sat in as emergency co-host, Esiason said, “I just want people know out there that I’ve loved my partner for 10 years and I still love my partner. I loved his family, loved his kids, and I am praying every single day that, you know, he lands on his feet. There’s nothing worse than having a family going through what they have to go through.”
