CEOS Ticket Resale Business Exposed as Massive Ponzi Scheme

JASON NISSEN, the CEO and President of a premium ticket resale business, was arrested and charged in Manhattan federal court today with defrauding victims of at least $70 million in a multimillion-dollar Ponzi scheme. NISSEN was arrested this morning and will be presented in Manhattan federal court later today.

According to the Complaint filed in Manhattan federal court, NISSEN operated a ticket resale business, located in Manhattan, New York, through which he purchased large quantities of premium tickets for sporting and entertainment events, and then resold such tickets for a profit. However, in truth and in fact, NISSEN used the victims’ money in large part to repay other victims and to enrich himself.

The victims were led to believe that their money would be used to purchase bulk quantities of premium tickets to sporting and entertainment events, such as the Super Bowl, the World Cup, the U.S. Open, and ‘Hamilton,’ and then resold the tickets at a profit. However, NISSEN used the money to make cash withdrawals, transfer funds to his personal and controlled company bank accounts, and to repay other victims.

One victim, referred to as ‘Victim-2’ in the Complaint, gave NISSEN and his ticket business more than $1.9 million to be used for the bulk purchase of tickets to a UFC fight in New York to be resold by NISSEN. Instead of purchasing tickets, NISSEN used the money for personal expenses and to repay other victims.

Acting Manhattan U.S. Attorney Kim said: ‘Jason Nissen claimed he was investing in premium tickets for events like the Super Bowl, the World Cup and the Broadway hit ‘Hamilton,’ but as alleged, Nissen was actually cheating his investors out of over $70 million and spending it on himself.’

The FBI Assistant Director-in-Charge William F. Sweeney Jr. said: ‘As charged today, Nissen represented his business as an investment opportunity for those willing to finance the purchase of large quantities of premium tickets to a number of sporting events and entertainment venues. The tickets were supposed to be sold for profit, but they weren’t. As alleged, Nissen eventually defrauded his victims out of at least $70 million collectively, all of which he used in furtherance of his scheme and for his own personal gain.’

NISSEN’s scheme was uncovered after an investigation by the FBI’s New York Field Office and the Office of the Acting U.S. Attorney for the Southern District of New York. NISSEN faces charges of wire fraud and securities fraud, among other charges.

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