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Michael J. Clarke, 62, lost his job once it came to light that his promises of getting discounted tickets that he could later sell at premium rates for concerts and sporting events -- as well as seat licenses to the U.S. Open -- were lies, authorities said.
Clarke, who was a licensed municipal securities trader, promised victims who fronted him the money for the purported ticket brokerage that they'd get a portion of the profits, Acting U.S. Attorney Rachael A. Honig said.
He pocked much of the money for himself and used the rest to repay previous investors in the bogus business, a complaint on file in U.S. District Court in Newark says.
Clarke ducked customers looking to retrieve their investments while issuing worthless checks to some of them, the government said in charging him with wire fraud.
At one point, the stockbroker reportedly owed more than $300,000 to one individual and $169,800 to another. The victims were pursuing civil suits against him when the federal investigation began.
Honig credited special agents of the FBI with making the case, which is being handled by Assistant U.S. Attorney Jennifer S. Kozar of her Economic Crimes Unit in Newark.
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