Utsick faces substantial jail term

Jack Utsick, the former concert promoter who was charged with defrauding an estimated 3,300 investors out of nearly US$300 million, faces up to 20 years in prison after pleading guilty to a mail fraud charge. Many who lost substantial sums were former airline pilots, Utsick's own former profession. Prosecutors say that that Utsick, 73, who appeared in court in Miami on Friday, operated his promotion company, Worldwide Entertainment, as a "ponzi scheme", repaying older investors with money from newer ones. Worldwide promoted tours by arena-filling artists such as The Rolling Stones, Fleetwood Mac, Elton John, The Pretenders, Aerosmith and Fleetwood Mac before being placed into administration amid mounting debts in 2006. A subsequent investigation by the Securities and Exchange Commission (SEC) discovered that Utsick, who earned millions of dollars a year, actually lost money on most tours.

Utsick departed for Brazil after the company failed, but was extradited to the US in 2014 after a protracted court battle, and since then has been in custody. Utsick will be sentenced on 23 August and has been ordered to repay $169m to Worldwide’s investors.

http://www.miamiherald.com/news/local/crime/article52742440.html
http://www.miamiherald.com/news/local/crime/article83118357.html

Ticketing updates

The Sunday Times reports that the Royal Albert Hall is going to introduce 'Ryanair style' ticketing with prices for the latest touring show by Cirque du Soleil rising in line with demand. The cost of tickets for the most popular performances of Amaluña can be up to 30% higher than those for the least popular. If the scheme, introduced by the circus company, is successful, it could lead to the adoption of full “dynamic” or variable pricing in other halls and theatres. 

A BBC 5 live investigation has discovered that laws banning the touting of football tickets are being flouted, leaving supporters vulnerable to dubious online brokers. In a bid to clamp down on illegal trading, Manchester United have seized more than 1,700 tickets during the last two seasons. There are also concerns that some websites allowing fans to legitimately resell tickets for other types of show may be in breach of consumer protection legislation introduced last year. The Society of Ticket Agents & Retailers warns the online trade allows unscrupulous firms to "dupe unsuspecting ticket buyers" on an "industrial scale". The society is developing an industry code of practice for legitimate ticket resellers.


Terence Butts (63) has been convicted of frauduent trading and converting or transferring criminal property at Soutwark Crown Court and sentened to 6 years in prison. Butts, 63, and accountant Nimal Fonseka (78), were alleged to have sold £2m worth of non existant tickets to potential customers for occasions including the V Festival and the 2008 Beijing Olympics . But they only provided £280,000 worth of tickets - just 14% of what they had sold - claiming that their key supplier 'Peter's Tickets' had let them down.  Butts sold 15,000 through his company Durban Vienna Ltd and his websites included summerfestivals.com and tickets4venues.com.  Butts would tell cusomers that he could not suply tickets, telling them to reclaim the funds paid from their credit card provider. It was estimated B+S Card Services lost £1.2 million.  Foneska was found not guilty on the same two charges. Security expert Reg Walker from iridium Consultancy told Live UK that Butts was 'top of the ticket fraud tree' but added that he had made the police aware of his actions as far back as 2008. 

Fraudsters claim to rep Aerosmith and Pearl Jam

Fraudsters have attempted to scam promoters by posing as representatives of Aerosmith and Pearl Jam in a fake email scam. The would-be fraudsters claim to be from International Talent Booking (ITB) and they sent out circulars saying they are representing and booking a Pearl Jam and Down tours for 2015, and more recently an Aerosmith tour for 2016.

In response, ITB has issued a warning to promoters, urging them to disregard the emails, which claim to be from ITB agent Lucy Dickins. “They have stolen our logo and address from the internet and are posing as ITB to scam money off unsuspecting promoters, going to the extent of sending fake riders and contracts and attempting to collect deposits,” said the firm in a statement.

The agent for both Pearl Jam and Aerosmith is Rod MacSween, and for Down is Mike Dewdney, both at ITB.

ITB can be called on 0207 6376979 (ask for Diana in Rod MacSween’s office):  the company’s website is at itb.co.uk.

http://www.musicweek.com/news/read/warning-for-promoters-after-fake-aerosmith-and-pearl-jam-email-scam/063597

Fraud investigation continues at SMG

Police are investigating allegations of a fraud at venue operator SMG Europe. The Manchester-based company runs venues including the 21,000 capacity Manchester Arena, First Direct Arena in Leeds and Metro Radio Arena Newcastle.  Greater Manchester Police (GMP) said they had received an allegation of fraud but that no arrests have been made and enquiries were ongoing. SMG Europe has not commented on the matter, but Amplify says the fraud investigation is tied to an internal embezzlement case, quoting Bruce Hanson, corporate counsel for SMG, who said that last year “internal controls picked up a potential embezzlement” by an employee. “They use the term fraud a little differently,” in the UK, Hanson said. “SMG is not being investigated. Police are looking at a possible crime against the company.” He added that SMG had first discovered financial impropriety “several years ago”.

http://www.musicweek.com/news/read/police-investigating-alleged-fraud-at-smg-europe/062517

http://www.manchestereveningnews.co.uk/business/fraud-allegation-manchester-arena-operator-9690747

Ticket fraudster gets four more years in prison

Convicted fraudster Alan Scott has had an additional four years added to his seven year prison sentence after failing to pay back £500,000 of ill gotten gains that was ordered by the judge at Southwark Crown Court. Scott and partner in Xclusive, Terence Shepherd, were masterminds behind a £5 million fraud where thousands of customers applied for but never received tickets for events including the 2008 Beijing Olympic Games. Victims included double Olympic gold medallist Rebecca Adlington's parents and many sports and festival fans. Shepherd received an eight year sentence - and has also now failed to meet a deadline to pay back the £1.25 million he received from the scam, with a default sentence of six years if he fails to pay.  

More here http://www.sfo.gov.uk/our-work/our-cases/case-progress/xclusive.aspx

Huge Ticket Fraud in the UK

A massive ticketing fraud in the UK continues to claim victims with over 3,000 counterfeit tickets already cancelled or confiscated from shocked event fans. Shows by Bruno Marrs, Neil Young, Beyonce, Michael Buble, Kings of Leon at the 02 in London and LG Arena in Birmingham along with Live Nations's Wireless Festival have been targeted, with the tickets seemingly sold on secondary ticketing re-sale sites such as Viagogo, StubHub and GetMeIn and the popular GumTree site. Police are investigating.

Viagogo publishes top 10 'scammed' UK shows

A new report from secondary ticketing website Viagogo, titled Scam Nation 2013, says that up to 4.7 million people paid for non-existent tickets last year, of which about a quarter probably never got their money back with fraudsters pocketing £50 million. The new report, based on a survey of 2000 consumers and some estimates about average ticket prices, echoes that issued by the London Metropolitan Police in February which also raised concerns about the growth in ticket fraud in the internet age who p/ut the loss to consumers at £40 million. Of the 4.7 million tickets fraudulently sold in 2012, Viagogo says music events accounted for the highest number, followed by comedy, theatre, football and rugby in that order. The report also reckons in the region of 240,000 fake tickets for Olympic events were sold. 

The top 10 scammed events were:

1. Coldplay - Mylo Xyloto Tour
2. Rolling Stones - 50th Anniversary Tour
3. One Direction - Take Me Home Tour
4. V Festival 2012
5. Jay Z and Kanye West - Watch The Throne Tour
6. Bruce Springsteen UK Tour
7. Stone Roses - Reunion Tour
8. Madonna - MDNA Tour
9. Michael McIntyre - Showtime! Tour
10. One Man Two Guvnors