Ex-concert promoter gets 10 years for fraud

Austin man promised big-name shows, but they never happened.

A former Austin concert promoter was sentenced to 10 years in prison after pleading guilty to securities fraud, the Texas State Securities Board said Friday.

As part of a plea agreement reached in Travis County district court, David Elliott Rosen must also pay $1.8 million in restitution to people who invested in his businesses.

Rosen operated Rozone Productions LLC, which filed for bankruptcy in 2010, and Illuminated Entertainment Group LLC, according to the state securities board. He was indicted in August 2015 on charges of securities fraud, theft and money laundering.

The charges stemmed from businesses he ran that reportedly sold investment contracts and promissory notes as part of a “concert investment program,” according to the securities board.

The investments, which were made in 2009 and 2010, reportedly ranged from $7,000 to $200,000. Some investors — individuals and companies — said they made multiple contributions.

The state said Rosen told investors their money would be used to put on concerts featuring bigname performers such as the Black Eyed Peas, the Eagles and Justin Bieber.

Those concerts never happened, according to investigators.

Much of the money that was invested, which was supposed to go into a third-party escrow account, wound up being used to cover Rosen’s personal expenses, the state securities board said.

The state said Rosen also failed to disclose to investors that previous investors in his concert investment program never received returns they were promised.

In a separate investment fraud case, Rosen pleaded guilty to theft by deception. He was sentenced to 10 years in prison in that case, as well. The sentences will run concurrently.

Rosen was also ordered to pay $409,000 in restitution in that case.