A U.S. bankruptcy judge in New York has thwarted the attempt of a former ticket reseller accused in a Ponzi scheme from selling nearly 300 U.S. Open tickets.
According to Law360, Judge James L. Garrity Jr. last week granted a temporary restraining order prohibiting National Event Holdings LLC’s ex-CEO, Jason Nissen and brother Robert Nissen from selling or distributing any tickets – including those for the tennis championships – pending the outcome of the federal case.
Prosecutors have accused Jason Nissen, the former CEO of the now-bankrupt National Event Holdings, of participating in a Ponzi scheme. They say he defrauded investors of $70 million by claiming he was using their money to purchase and resell tickets for sporting events and Broadway shows like “Hamilton.”
In reality, federal officials say, Jason Nissen was using the cash for personal expenses and to cover payouts to lenders and other investors. He has been charged with one count of wire fraud for allegedly creating doctored bank statements to falsify the business’ success. National Events became aware of the alleged scheme on May 10 and removed Nissen as CEO.
National Events in June filed for Chapter 11 with $10 million to $50 million in liabilities and only $1 million to $10 million in assets, Amplify has previously reported.
The company filed an adversary complaint against the brothers a month later, on July 5. National Events claims each has 144 tickets to this year’s matches and has compensated them both about $25,000 for purchasing the seats. The company wants the court to let it claim the tickets as property.
Jason and Robert Nissen’s attorney says National Events has no claim to the subject tickets. The brothers apparently tried to sell them through various online exchanges, causing National Events to file its motion for a temporary restraining order and preliminary injunction to stop them from doing so.
National Events is represented by Stephen B. Selbst and Hanh V. Huynh of Herrick Feinstein LLP. Peter R. Silverman of Silverman Shin & Byrne PLLC is Jason and Robert Nissen’s lawyer.
Jason Nissan was a popular Queens, New York math teacher before entering the ticketing world, according to the New York Post. He allegedly admitted the scheme to one of his investors, saying, “I was robbing Peter to pay Paul.”
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