Broadway is filled with fantastic stories, scripts that were made up to entertain those who enter through the doors and take a seat. Cast members don costumes and play the role of something that they aren’t, saying things with no intention of carrying through — all for the crowd’s amusement.
Broadway is filled with make-believe, but federal agents say that when it came to the show “Rebecca: The Musical,” the characters were not the only thing that was fake. Officials say that a stockbroker created fake individual and business investors to defraud a group of producers.
According to FBI documents, the businessman made false promises that there were more investors and more money than really existed. Four overseas investors with $5.4 million in funding were nothing but a figment of imagination. Instead, the stockbroker allegedly asked for $60,000 as a sort of fee for connecting the producers with the investors.
The agreement that was drafted on Feb. 7 gave the stockbroker a finder’s fee of $7,500 for connecting the producers with willing investors. If the broker raised over $250,000 he was entitled to 8 percent of the amount above the threshold. For the $5.4 million, that number equated to $60,000.
The producers did not just enter into the agreement on a whim; they were introduced to the stockbroker in February 2012 through an investment community. The producers had failed to come up with $4 million that was required in the budget to fund the musical.
Source: CNN, “Stockbroker ran Broadway scam, authorities allege,” Brittany Brady, Oct. 17. 2012
Investment plans that involve allegations of fraud are considered white collar crimes, and our New Jersey defense team helps those who find themselves on the receiving end of these claims.