In a case that has connections to multiple states but was filed with a federal court in Pennsylvania, a man and his attorney are accused of defrauding investors in connection to a concert promotion business. The men now face federal charges of conspiracy and wire fraud in the matter, which could bring serious legal ramifications if a conviction is obtained. One of the men is also awaiting trial in another case, in which authorities allege that investors and a major university were bilked out of nearly $200,000 related to promotions for a Stevie Wonder concert.
The new charges are based on concert promotion efforts conducted by one of the men under the business name Sports Dimensions, Inc. The business was advertised as specializing in concert promotion and the management of nightclubs. In addition, the same man was also the president of Castle Entertainment, another nightclub management company.
Prosecutors say that the business ventures were bogus, and that the president of both companies and his attorney worked together to defraud investors of nearly $2.1 million. It is also noted that investors did receive a return of approximately $326,500 from their investment. However, it is alleged that the money put into the companies did not go toward concert promotion efforts, but was instead used to pay the owner's business and personal expenses and to make payments to earlier investors.
As the case moves forward in federal court in Pennsylvania, the criminal defense strategy for both men may rely heavily on what promotional activities were conducted by the two companies. If there were successful and ongoing promotions or management services in place, then it is possible that the charges of conspiracy and wire fraud could be difficult to prosecute. However, if no promotional or management efforts were made, then plea negotiations may offer the best path forward for both men.
Source: staradvertiser.com, "'Wonder Blunder' suspect facing charges in Pennsylvania", Dan Nakaso, March 24, 2015