Former Austin Concert Promoter Given Lengthy Prison Sentence For Securities Fraud

AUSTIN, TX — A one-time entertainment promoter from Austin has been sentenced to 10 years in prison in connection to a nearly $2 million fraud case based on the sale of investments in his concert-promotion business, regulators said Friday.

David Elliott Rosen of Austin pleaded guilty to securities fraud in Travis County District Court, and was sentence on May 4, according to Texas State Securities Board officials. He also was ordered to pay restitution in the amount of $1.8 million, regulators noted.

Rosen was indicted in 2015 on securities fraud, theft, and money laundering charges resulting from his sale of investment contracts and promissory notes in a “Concert Investment Program.” He operated businesses under the names Rozone Productions LLC and Illuminated Entertainment Group LLC.

Rosen told investors he would use their money to secure specific musicians for concerts. He noted attempts to raise money for concerts featuring Justin Bieber, the Eagles, and the Black Eyed Peas, among other big musical acts.

But there was one small problem: There were no concerts featuring those artists, regulators said. Investors' money was supposed to go into a third-party escrow account and not to be used for general business or personal expenses, and investors were supposed to get their money back if the concerts didn't happen.

Rosen ultimately used much of investors' money to pay his personal expenses, according to regulators.

Rosen sold the securities without disclosing that previous investors in the concert investment program did not receive the returns that were promised to them, officials said. He also misrepresented to investors that he would use their money to secure specific music artists and to fund the general operational expenses of his concert promotion businesses.

Individuals and companies incurred significant losses as a result, making investments in the concert investment program of between $7,000 and $200,000 in 2009 and 2010, according to investigators. Some made multiple investments, officials added.

Rosen also pleaded guilty to alleged theft by deception for an unrelated investment fraud. He was sentenced to 10 years in state prison and ordered to pay restitution of $409,000. The prison sentences will run concurrently, officials said.

Rozone Productions filed for liquidation in the Bankruptcy Court for the Western District of Texas in 2010.
Attorneys in the Enforcement Division of the Texas State Securities Board prosecuted Rosen in conjunction with the Travis County District Attorney's Office, according to regulators.

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