Live events sector
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, 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 had in reality 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.