Hamilton Ponzi Scheme: Discussion of the Case

Paper Type:  Research paper
Pages:  4
Wordcount:  876 Words
Date:  2022-05-09


Hamilton Ponzi Scheme is a case study involving Joseph Meli, and the fraudulent receipt acts that he anticipated to cone people multibillion dollars by through unavailable or untrue ticket booking (Macey, 2010). Joseph Meli deceived the public and people interested in holding events by claiming that he had over 35,000 tickets and opted to resell them to the willing buyers on behalf of Hamilton company. Besides the scheme connecting to Hamilton, it also involved the famous former WFAN sports radio host Craig Carton who was later arrested and charged of securing investor funds in the selling of Hamilton company tickets to settle his gambling debts. Hamilton Ponzi Scheme by Joseph Meli and his allies lured the public about $81 million for the reselling of tickets for holding shows and promoting concerts.

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The Detailed Description of the Law and its Relevance to the Industry

According to US Securities and Exchange Commission, it is clear that there was a huge violation of Trust Indenture Act of 1939 since Meli and his allies engaged in wire fraud. According to SEC, it is clear that Joseph was supposed to be charged guilty and be subjected to a sentence of not less than 20 years in prison. However, on pleading guilty, his verdict would be lowered to about 78 to 97 months in jail. The law prohibits individuals from engaging the public in any form of a scam like the Hamilton Ponzi wired scam by Meli and his allies which ended up scamming around $81 million from about 125 investors in the market. Since producer Hamilton denied about Hamilton's company involving in reselling of tickets, then it was clear that Meli had planned to engage in a wired scam to render the public and the company bankrupt over nothing to offer the public nor the company.

The US Exchange and securities commission charged Meli for violating the securities laws. Additionally, the criminal charges were set against him and accused all his allies with two counts of securities and wired fraud and a conspiracy to commit both counts (Macey, 2010). The charges were relevant since the Exchange Commission and US securities are against any conspiracy of securities fraud or any fraudulent act aimed at coning an individual or a company. The law focuses on all sides of the case, but the situation of Meli became too hot to handle when he was also accused of fraudulent acts involving Harry Potter Scam. The scam involved engaging two investors in a fraudulent business partnership that rendered them $7.86 million concerning buying a block of tickets with the anticipation that the tickets would be sold at a profit.

The Importance of US Securities and Exchange Commission to the Companies

Macey (2010) mentioned that the law is abbreviated as SEC and it is responsible for making enforcement of the federal securities laws, adopting securities rule, establishing regulations for securities industry and controlling the inappropriateness identified in any securities and commission (Macey, 2010). SEC also enforces the security Act of 1933 to conform to the Trust Indenture Act of 1939 and the Investment Act of 1940. The law protects companies from any repeat or attempt of an individual to violate the rights of people and business operations as protected by the US Securities and Exchange Commission (Macey, 2010). The law protected the company from making a further loss of up to $95 million by 2017.

The companies and the conned individuals were able to feel at ease after judges issued an injunction in SEC's Scheme. Macey (2010) points out that the directive was according to the law thus ordered freezing of assets that belonged to all the alleged operators of Ponzi Scheme. The suspected fraud also leads to the U.S. District Judge Stanton Louis to put the US Exchange Commission and Securities'' civil fraud against Matthew Harriton and Meli to allow the federal prosecutors to speculate the related case concerning Meli and all the related defendants (Stempel, 2017). The efficacy of the law is to the company is that it brought to book any planned conning of the public as it was found out that the defendants were using the current investor's money to repay the early investors while using the remaining funds to repay their gambling debt and acquiring jewelry.

Viability of the Law on the Case

Stempel (2017) points out the appropriateness of the case by focusing on freezing the defendants' accounts and preventing them from making any further profits. The criteria were viable and relevant as it secured the public and the investors from being conned and making the defendant inappropriately raise more money.

The Companies Concerned About the News

The companies that care about the news are the companies that are directly affected by the fraud carried out by the alleged fraudulent defendant Joseph Meli (Stempel, 2017). The companies are Hamilton company the official company that is connected to Meli's strategies to make his acts successful. The second company is Broadway Blockbuster that was to buy tickets for holding a British singer, Adele. The third company that is required to receive the news is Harry Potter and the Cursed Child.


Macey, J. R. (2010). The Distorting Incentives Facing the US Securities and Exchange Commission. Harv. JL & Pub. Pol'y, 33, 639.

Stempel, J. (2017). Judges issues injunction in SEC's Hamilton' Ponzi case. U.S. Legal News. Retrieved from https://www.reuters.com/article/usa-crime-ponzi-hamilton/judge-issues-injunction-in-secs-hamilton-ponzi-case-idUSL1N1HZ260

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Hamilton Ponzi Scheme: Discussion of the Case. (2022, May 09). Retrieved from https://proessays.net/essays/hamilton-ponzi-scheme-discussion-of-the-case

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