Two Men Arrested For Ponzi Scheme Involving 'Hamilton' & Adele

The U.S. authorities charged two men for deceiving investors in investing money in a false ticketing business for popular shows like the award-winning musical "Hamilton" and Adele concert.  Hamilton show gets the record of most money grossed within its week because on a Broadway event and highest-priced tickets, and seats have been extremely hard to get.

The Security and Exchange Commission filed a complaint against Joseph Meli and Steven Simmons and were arrested on Friday on securities fraud and wire fraud charges brought by Manhattan federal prosecutors. Also, accomplice to the fraud, a man named Matthew Harriton also faces a separate civil fraud suit filed by U.S. Securities and Exchange Commission.

According to The New York Times, the two men Joseph Meli and Matthew Harriton persuaded at least 125 investors in 13 states and raised for about $81 million for their ticket-reselling businesses. Meli and Simmons are also accused in the criminal case of running a similar scheme swindling investors in participating in a hedge fund.

The men told the investors they had a deal with a Hamilton producer to acquire 35,000 tickets to the Broadway show, even though no agreement was ever in place. The defendants usually promised investors they would see a 10 percent annual return on their investments, along with half of some of the proceeds after expenses, claimed by Boston Globe report. 

But the defendants used the $51 million to maintain a Ponzi scheme and used the money for personal expenses as jewelry purchases, private school and camp tuition, and casino payments. The Ponzi scheme meets its end in late 2106 when a fellow conspirator decided to cooperate with authorities.

The defense lawyers managed to sway U.S. Magistrate Judge James C. Francis IV to release the three defendants after paying the $1 million bail. Meli said that the charges against him are not true and the other defendants choose to remain silent.  

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