SEC charges NY men in ‘Hamilton’ ticket resale fraud scheme

The Securities and Exchange Commission (SEC) charged two New York men with fraud after they duped investors out of millions they said would go to buying and reselling tickets to the musical “Hamilton,” the SEC announced Friday.

Joseph Meli and Matthew Harriton solicited more than $81 million from at least 125 investors in 13 states, which they said would go toward tickets for “Hamilton” and other high-demand shows and concerts, according to the SEC complaint. Meli and Harriton even claimed they reached a deal with “Hamilton” producers to purchase 35,000 tickets, which they’d sell for a higher price.

{mosads}Meli and Harriton instead used some of the money to pay back earlier investors to keep the fraud going, known as a Ponzi scheme, while using at least $2 million on jewelry, private school tuition and casino payments.

“As alleged in our complaint, Meli and Harriton raised millions from investors by promising big profits from reselling tickets to A-list events when in reality they were moving investor money in a circle and creating a mirage of profitability,” said Paul G. Levenson, director of the SEC’s Boston regional office.

Meli and Harriton will also face criminal charges from the U.S. attorney for New York’s Southern District.