Ex-Concert King Utsick Extradited in $300M Ponzi Scheme

MIAMI BEACH, FL – John P. (Jack) Utsick, 72, once a major player in the concert promotion industry, appeared in federal court today after being extradited from Brazil to face charges in a staggering $300 million securities fraud. Utsick, formerly of Miami Beach, allegedly orchestrated a Ponzi scheme that left over 3,300 investors empty-handed, believing their money was funding legitimate entertainment ventures.

The announcement came from Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office. Utsick fled the U.S. in 2006, after the Securities and Exchange Commission (SEC) filed civil charges and an FBI investigation began to close in. For eight years, he evaded justice, fighting extradition through the Brazilian court system.

According to a Superseding Indictment unsealed in August 2014, Utsick’s Worldwide Entertainment, Inc. and The Entertainment Group Fund, Inc. (Worldwide) promised investors fixed returns of 15% to 25%, plus a cut of profits from concerts featuring A-list artists. The indictment alleges Utsick operated this scheme from 1998 through late 2005. But the reality, prosecutors say, was a house of cards. Most entertainment projects lost money, and Utsick used funds from new investors to pay off earlier ones – the classic hallmark of a Ponzi scheme.

The alleged misuse of investor funds extends beyond simple fraud. Utsick is accused of diverting money for personal expenses, including stock and options trading, the purchase of two multi-million dollar Miami Beach condominiums, a yacht, and even funding the low-budget film “National Lampoon’s Pledge This!” starring Paris Hilton. Utsick previously promoted events for major artists like Coldplay, The Rolling Stones, Elton John, Aerosmith, Luis Miguel, and Juanes, leveraging his industry connections to lure in unsuspecting investors.

The U.S. Department of Justice initiated extradition proceedings in Brazil, which Utsick fought relentlessly. The Supreme Court of Brazil ultimately ruled in favor of the U.S., ordering his extradition. He was taken into custody by U.S. Marshals on December 6, 2014, and transported to Miami for processing. Utsick made his initial appearance today before U.S. Magistrate Judge Jonathan Goodman. He is charged with eight counts of mail fraud, each carrying a potential twenty-year prison sentence.

“This case is a testament to the FBI’s and DOJ’s commitment to pursuing financial criminals, no matter where they hide,” stated Ferrer. Assistant U.S. Attorney Jerrob Duffy is prosecuting the case, with the SEC’s Miami Regional Office providing substantial investigative assistance. Further proceedings are assigned to U.S. District Judge Cecilia M. Altonaga. A full press release is available at http://www.usdoj.gov/usao/fls and related court documents can be found on the District Court website.