Tags: craig carton | boomer | radio | arrested

Craig Carton, Boomer Radio Co-Host, Arrested

Craig Carton, Boomer Radio Co-Host, Arrested

Craig Carton speaks on stage during Diageo 'Decisions' Virtual Reality Premiere Event at Samsung 837 on Nov. 17, 2016, in New York City. (Dave Kotinsky/Getty Images for Diageo)

By    |   Thursday, 07 September 2017 06:57 AM

Craig Carton, cohost of the popular "Boomer and Carton" radio show on WFAN in New York City, was arrested by federal agents Wednesday morning at his home on charges that he stole millions from investors by issuing phony concert tickets to pay off gambling debts, the New York Post reported.

Carton, 48, who hosts the radio show with former Cincinnati Bengal now NFL analyst Boomer Esiason since 2007, was charged in parallel investigations by the Securities and Exchange Commission and the U.S. Attorney's Office in the Southern District of New York.

In the SEC statement, Carton was accused with business partner Joseph Meli, 43, of a Ponzi scheme where they used the funds of new investors to pay off old investors and other debts, according to court documents, the Post said.

The SEC said Carton and Meli violated commission rules through six companies they controlled – Advance Entertainment LLC, AdvanceM Ltd., Misoluki Inc., Misoluki LLC, Ticket Jones LLC, and Tier One Tickets LLC.

The SEC said in its complaint, which was filed in U.S. District Court in Manhattan, that Carton and Meli allegedly lied about having access to large blocks of face-value tickets to popular concert performances.

Carton and Meli allegedly promised investors high returns from the price markups in ticket resales, but are accused of misappropriating at least $3.6 million to repay earlier investors and cover such other expenses as Carton's gambling debts, the SEC statement said.

Feds also charged that Carton stole an additional $2 million by tricking a concert venue into forwarding an investor's money into a bank account belonging to one of Carton's companies.

"As alleged in our complaint, investors were lured with promises of big profits from resales of A-list concert tickets, but little did they know their money was being used to cover Carton's gambling debts among other things," Paul Levenson, director of the SEC's Boston Regional Office, said in commission's statement.

A second complaint from the U.S. Attorney's Office in Southern New York said Carton and Michael Wright, 41, are each charged with one count of conspiracy to commit securities fraud and wire fraud, one count of wire fraud, and one count of securities fraud in a similar case, according to a statement.

Federal prosecutors charged that Carlton, Wright and a co-conspriator worked together to dupe investors into providing them with millions of dollars, based on representations that the investor funds would be used to purchase blocks of tickets to concerts, which would then be re-sold on the secondary market, Newsday reported.

"Carton and Wright thought they could get off easy by allegedly paying off their debts with other people's money," FBI assistant director-in-charge William F. Sweeney Jr. said in a statement. "They then attempted to pay off investors with money that would eventually become future debt, as alleged.

"We see this time and time again, the rise and fall of a Ponzi scheme destined for failure. The truth is, the time will come when your luck runs out. Unfortunately for those arrested today, that time is now," Sweeney continued.

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Craig Carton, cohost of the popular "Boomer and Carton" radio show on WFAN in New York City, was arrested by federal agents Wednesday morning at his home on charges that he stole millions from investors by issuing phony concert tickets to pay off gambling debts.
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