Manhattan Man Pleads Guilty to Securities Fraud Scheme
A Manhattan man has pleaded guilty to participating in a multimillion-dollar securities fraud scheme, authorities announced today. Joseph Meli, 43, of New York, New York, was charged with securities fraud for deceiving investors into giving him money that he pocketed to fund his own extravagant lifestyle.
Between 2015 and January 2017, Meli conducted a scheme to defraud more than approximately 130 investors who invested a total of more than approximately $95 million through false representations that he would use investor funds to purchase tickets to various live events for resale at a profit on the secondary market. However, Meli utilized a substantial portion of the investor funds he obtained for his personal expenses, including payments for a $3 million house in East Hampton, New York, a 2017 Porsche convertible, and expensive watches and jewelry.
In furtherance of the fraudulent scheme, Meli falsely represented to investors that he had entered into written agreements with production companies for popular Broadway shows and with management companies for popular singers and music bands to purchase large blocks of tickets to the shows and performances. However, Meli had not entered into such agreements and did not have any contractual rights to purchase such tickets from the production and management companies.
On January 4, 2018, Meli pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $5,000,000. In addition, pursuant to a plea agreement with the Government, Meli agreed to forfeit proceeds of the offense and to pay restitution to the victims of the offense. Meli is scheduled to be sentenced by Judge Kimba M. Wood on January 31, 2018.
The case was investigated by the Federal Bureau of Investigation, and the Securities and Exchange Commission assisted with the investigation. Acting Manhattan U.S. Attorney Joon H. Kim praised the work of the Federal Bureau of Investigation and thanked the Securities and Exchange Commission for their assistance.
Defendant Information:
Full Name: Joseph Meli
Age: 43
Crimes: Securities Fraud
City and State: New York, New York
Date: January 4, 2018
Sentence: Pleaded Guilty to Securities Fraud; Up to 20 years in prison and $5,000,000 fine
Dollar Amounts: $95 million, $3 million house in East Hampton, New York, 2017 Porsche convertible, and expensive watches and jewelry
Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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