US Radio Host Craig Carton Used Ponzi Scheme To Pay Off Massive Gambling Debts

(Photo: Golfdigest.com)

A popular radio show host has been arrested and charged with 4 counts of fraud after implementing a brazen Ponzi scheme that duped investors of millions of dollars, in order to pay off a slew of gambling debts, according to NJ.com news.

WFAN radio personality Craig Carton was one of three men charged, authorities claiming he orchestrated the scheme to cover gambling losses, a Ponzi scheme “designed to fleece investors out of millions ultimately to be spent on payments to casinos and to pay off other personal debt," FBI Special Agent Sean Sweeney said. 

Carton has been suspended from hosting his ‘Boomer and Carton’ show, the day after his arrest seeing co-host Boomer Esiason explain to listeners:

“I am aware now why Craig is not here this morning. Unfortunately, he was arrested this morning.”

Meanwhile the federal court in Lower Manhattan was hearing details of how the scam was allegedly hatched in September of last year as ‘a way to eliminate what authorities said was $1 million in debt’ report NJ.com. What they came up with was a devious but fairly simple plan ‘to look for investors to help them buy blocks of concert tickets at face value so they could be re-sold’, according to authorities.

Carton and his two alleged accomplices exchanged e-mails outlining the scheme, the radio host in one stating:

"Guys. I've done it. One investor ready committed $10m liquid and $40m LOC (line of credit) with $50 more if needed. I need some info. List of shows we can 100% prove access to tickets. How many when and how it's returned and predicted success."

The FBI claim part of the investment money from an unnamed company, believed to be hedge fund Brigade Capital Management, was passed on to Carton and his associates, via Tier One Tickets, which Carton owned.

Court documents state that ‘On Dec. 21 and 22, Carton sent a total of $133,000 to several casinos in New York state and elsewhere,’ and ‘the next day, Carton wired $1,050,000 in fraudulently obtained funds, including $500,000 to a casino’.

NJ.com report that, ‘Another $250,000 went to an unnamed investor who earlier give Carton $1 million to finance the host to purchase tickets for a concert tour of a "well-known performer",’ adding that, ‘on Dec. 28, Carton wired an additional $400,000 to casinos, authorities said. The SEC complaint identified the performer as Adele.’ 

Carton has since been released after posting a $500,000 bond.