SEC Obtains Final Judgment Against James Siniscalchi in Ticket Resale Investment Scam
Securities and Exchange Commission v. James Siniscalchi, No. 19-CV-3792 (S.D.N.Y.)
NEW YORK (STL.News) On December 21, 2021, the U.S. District Court for the Southern District of New York entered a final judgment against James Siniscalchi of New York City, whom the SEC charged with stealing from investors who were falsely promised their funds would be used for the purchase and resale of tickets to Broadway shows and a sporting event.
In April 2019, Siniscalchi was charged by the SEC, arrested by the FBI, and charged criminally by the U.S. Attorney for the Southern District of New York. The SEC charged Siniscalchi with rebranding businesses formerly run by his cousin, Joseph Meli, who later settled to SEC fraud charges and pleaded guilty to securities fraud in a parallel criminal action. According to the SEC’s complaint, in the wake of Meli’s January 2017 arrest, Siniscalchi and his business partners raised money from investors, falsely promising the funds would be used only to purchase tickets to events including Broadway shows and a professional boxing match. The SEC charged that in actuality, Siniscalchi used investor funds to benefit himself and Meli and his family.
In the parallel criminal case, Siniscalchi pled guilty in June 2021 to one count of conspiracy to commit securities fraud and wire fraud. In September 2021, Siniscalchi was sentenced to three years’ probation, one year of which is to be served in home confinement, and was ordered to pay criminal restitution to his victims in the amount of $1,909,146 and additionally to pay forfeiture to the government in the amount of $2,082,425.
The final judgment entered in the SEC’s case against Siniscalchi permanently enjoins him from violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and orders him to pay $1,455,635 in disgorgement and prejudgment interest. Siniscalchi’s payment obligation is deemed satisfied by the entry of the restitution order entered against him in the parallel criminal case.
Additionally, on December 14, 2021, the SEC entered an order barring Siniscalchi from association with a broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization.
The SEC’s case was handled by Dahlia Rin, Alicia Reed, John McCann, Eric Forni, and Celia Moore of the Boston office. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Southern District of New York.