Skip to main content Skip to footer site map

Investors Sue Financial Firm for Not Vetting Ticket Reseller Involved in HAMILTON Ponzi Scheme

Last month, two New York city men were charged with fraud by the SEC for running a Ponzi scheme with money raised from investors to fund businesses purportedly created to purchase and resell tickets to such high-demand shows as the Broadway musical HAMILTON.

Now, attorneys representing a group of investors have filed a lawsuit in Manhattan federal court alleging a New York investment firm failed to properly vet the financial health and business practices of Joseph Meli and Matthew Harriton and their four purported ticket reselling businesses - Advance Entertainment, Advance Entertainment II, 875 Holdings, and 127 Holdings - involved in the Hamilton Ponzi scheme.

Lawyers David Pfeffer and Richard Schoenstein of Tarter Krinsky & Drogin LLP have filed suit in New York's Southern District against Tripoint Global Equities and Tripoint Capital Advisors over their actions, stemming from the private offering of a ticket reseller business formed last fall.

The complaint (which you can read in full below) alleges that Tripoint misled investors in claiming it had conducted an adequate investigation into the operations and finances of the ticket company, which was ostensibly formed to purchase and resell large blocks of tickets for Broadway shows and concerts but whose principals instead have been charged with running a Ponzi scheme that allegedly syphoned more than $80 million to pay themselves and other investors. The principals of the reseller operation have been charged with criminal conspiracy, securities and wire fraud.

"Instead of undertaking a reasonable due diligence review and investigation of the defendants' business plan to resell thousands of tickets of major concerts and Broadway shows, Tripoint instead focused on seizing its own commissions and continued to persuade our clients - and others - to invest more money into the reseller's Ponzi scheme, what has quickly become known as Hamilcon," said Pfeffer and Schoenstein.

On January 27, 2017, the United States and the SEC filed actions contending that $81 million was raised from over a 100 investors for investment in a ticket reselling enterprise including the Broadway musical Hamilton.

Related Stories
HAMILTON Will Return to Puerto Rico This June Photo
The hit musical Hamilton will be returning to Puerto Rico for two weeks in June 2023! The 'Angelica Tour' will perform June 13-June 25 at Centro de Bellas Artes Luis A. Ferré in San Juan. 

Interview: Adam Ali-Perez of HAMILTON at Proctors Theatre Photo
HAMILTON is still sweeping the nation, Adam Ali-Perez gives an inside scoop to life as a Universal Swing for the production!

Tickets Are on Sale For HAMILTON in New Zealand Photo
HAMILTON will make its New Zealand debut for a strictly limited season at Spark Arena in Tamaki Makaurau - Auckland in May 2023. Performances are set to run Friday 26 May 2023 - Sunday 11 June 2023.

HAMILTON is Headed to New Zealand in 2023 Photo
HAMILTON will make its New Zealand debut for a strictly limited season at Spark Arena in Tamaki Makaurau - Auckland in May 2023.

Buy at the Theatre Shop

T-Shirts, Mugs, Phone Cases & More

More Hot Stories For You

Nicholas Lloyd Webber, Andrew Lloyd Webber's Son, Has Passed AwayNicholas Lloyd Webber, Andrew Lloyd Webber's Son, Has Passed Away
March 25, 2023

Webber missed the Bad Cinderella opening on Thursday, March 23rd to be with his son, who passed away from stomach cancer after entering hospice care on Thursday.

Broadway Jukebox: The Best of Kander & EbbBroadway Jukebox: The Best of Kander & Ebb
March 25, 2023

Just yesterday, Broadway was introduced to the latest musical from John Kander and the late Fred Ebb- New York, New York is in previews at the St. James Theatre. We are celebrating the new musical with a playlist of the Best of Kander and Ebb.

Lea Michele Will Be Out of Today's FUNNY GIRL MatineeLea Michele Will Be Out of Today's FUNNY GIRL Matinee
March 25, 2023

Lea Michele will be out of today's matinee performance of Funny Girl on Saturday, March 25. Julie Benko will be on as Fanny. 

Video: Watch Jinkx Monsoon Sing CHICAGO's 'I Am My Own Best Friend' and More with ELLEVideo: Watch Jinkx Monsoon Sing CHICAGO's 'I Am My Own Best Friend' and More with ELLE
March 25, 2023

Watch Jinkx Monsoon sing musical theatre classics in a game of song association with ELLE!

Meet the Cast of THE THANKSGIVING PLAY, Beginning Previews on Broadway Tonight!Meet the Cast of THE THANKSGIVING PLAY, Beginning Previews on Broadway Tonight!
March 25, 2023

Second Stage Theater's production of Larissa FastHorse's play, The Thanksgiving Play, directed by Tony Award-winner Rachel Chavkin, will begin previews tonight, March 25th! Meet the cast of The Thanksgiving Play!