Grossman LLP Defeats Summary Judgment in Securities Fraud Case Arising from Ticket-Resale Ponzi Scheme
06/10/2022In a major win for investors with losses totaling over $5.5 million, Grossman LLP has defeated summary judgment in a securities fraud case arising from “a Ponzi scheme built on a false promise to buy and resell tickets to high-profile events like the Broadway musical ‘Hamilton.’”
Plaintiffs brought the lawsuit against Defendants Matthew Harriton and Joseph Meli after they “raised millions from investors by promising big profits from reselling tickets to A-list events when in reality they were moving investor money in a circle and creating a mirage of profitability.” Meli pleaded guilty to federal crimes for his role in the scheme and currently is serving a six-and-a-half-year sentence. Harriton, however, has argued that he was completely unaware of any fraudulent activities. Following the close of discovery, he moved for summary judgment on Plaintiffs' securities fraud and common-law fraud claims on the basis that Plaintiffs could not prove that he had acted with fraudulent intent. In a ruling issued yesterday, the Court disagreed, and is allowing Plaintiffs to proceed to trial.
Judge Stanton of the Southern District of New York found that through Harrison’s own testimony and documents, Plaintiffs had offered “evidence from a which a jury could infer Harriton’s conscious misbehavior or recklessness,” concluding that the “significance and persuasive effect” of that evidence would hinge on “the jury’s evaluation of Harriton’s credibility.”
The case, Nagelberg v. Meli, 17-cv-2524 (LLS), will now proceed to trial, where Plaintiffs are confident that they will prevail in holding Harriton accountable for his role in this Ponzi scheme.ATTORNEY: Webster D. McBride
CATEGORIES: Legal Developments, Firm Update, Ponzi Schemes
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