A New Jersey man has pleaded guilty to participating in a scheme to defraud investors who invested millions of dollars based on false representations that their funds would be used to purchase tickets to various live events for re-sale at a profit on the secondary market.
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that MICHAEL WRIGHT pled guilty in Manhattan federal court to his participation in the scheme. Wright pled guilty before U.S. Magistrate Judge Stewart D. Aaron.
U.S. Attorney Geoffrey S. Berman said, ‘Michael Wright admitted today that he and his partners in crime conducted an elaborate ticket-buying scheme to defraud investors of millions of dollars. From creating phony contracts to outright lies, Wright and his cohorts ensured that the money his backers thought they were investing actually went directly into his and his co-defendant’s pockets. Now, Wright has pled guilty to his audacious crimes and faces time in prison for his misdeeds.’
According to allegations in an Indictment filed in Manhattan federal court, previous court filings, and statements made in public court proceedings, Wright participated in a scheme along with Craig Carton and Joseph Meli to induce investors to provide them with millions of dollars, based on representations that the investor funds would be used to purchase blocks of tickets to concerts and other live events.
The indictment alleges that Carton and Meli purportedly had access to those blocks of tickets based on agreements that Meli had with a company that promotes live music and entertainment events (the ‘Concert Promotion Company’) and that Carton had with a company that operates two arenas in the New York metropolitan area (the ‘Sports and Entertainment Company’). In fact, neither the Concert Promotion Company nor the Sports and Entertainment Company had any such agreement with Carton, Wright, or Meli, or any entity associated with them.
Wright’s guilty plea relates to his role in this scheme, which involved the misappropriation of millions of dollars in investor funds. For example, on December 8, 2016, a New York-based hedge fund (the ‘Hedge Fund’) and Carton executed a revolving loan agreement (the ‘Revolving Loan Agreement’), under which the Hedge Fund agreed to provide Carton with up to $10 million, for the purpose of funding investments in the purchase of tickets of events.
Wright’s sentencing is scheduled, but the exact date is not provided in the source. However, it is stated that Wright faces time in prison for his misdeeds.
Defendant Name: MICHAEL WRIGHT
Crime: Participation in a scheme to defraud investors who invested millions of dollars based on false representations that their funds would be used to purchase tickets to various live events for re-sale at a profit on the secondary market.
City and State: New York
Exact Date: Not provided in the source
Sentence or Outcome: Faces time in prison for his misdeeds.
Dollar Amounts: $10 million
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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