Jersey City Man Charged With Wire Fraud In Event Ticket Scheme

NEWARK, NJ —A Jersey City man was scheduled to appear virtually in federal court Thursday on charges he defrauded investors in an event ticket purchase and resale business, using their money for his own personal benefit or to pay back other investors, according to the U.S. Attorney's Office.

Michael J. Clarke, 62, is charged with two counts of wire fraud in a scheme in which prosecutors said Clarke obtained approximately $617,400 from his victims.

According to court documents, between Oct. 2015 and Oct. 2016, Clarke, a licensed securities trader, told investors - who became victims - that he operated a ticket brokering business that purchased tickets to events and then resold them for a profit. Clarke also said that he had access to permanent seat licenses to the U.S. Open Tennis Championships, which could be purchased and resold for a profit.

Authorities said the victims invested money with Clarke, believing they would receive a share of the profits from sales of the tickets or the seat licenses. However, according to authorities, Clarke used their investments for his own purchases or to pay back prior investors in his ticket-brokering business.

According to the U.S. Attorney's Office, the two counts of wire fraud are punishable by a maximum of 20 years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest.