Man bilks victims out of $4.2M in ‘Magic Mike Live’ scheme
A Rhode Island man has admitted he defrauded investors out of more than $4.2 million in connection with the “Magic Mike Live” stage show in Las Vegas, the Justice Department announced in a news release Friday.
John A. Santilli Jr., 48, of East Greenwich, Rhode Island, pleaded guilty late Thursday to one count of securities fraud and one count of wire fraud.
According to his plea agreement, Santilli managed and partly owned Aloris Entertainment LLC, which acquired an interest – through securities called “Class A units” – in Mike’s Mobile Detailing LLC, the company that operates the “Magic Mike Live” stage show that runs at the Sahara Las Vegas.
Santilli misappropriated a significant portion of his victims’ investments, including by withdrawing more than $1 million at casinos across the United States, where he used investors’ money for gambling.
To raise more funds, Santilli falsely told his victims that new investment opportunities had arisen, resulting in Santilli selling shares in his businesses that corresponded to nearly double the number of Class A units of Mike’s Mobile Detailing that his company actually owned, the news release stated.
Santilli is scheduled to be sentenced on April 20.
Contact Tony Garcia at tgarcia@reviewjournal.com or 702-383-0307. Follow @TonyGLVNews on Twitter.
