‘ Hamilton’ Ponzi suspect linked to ticket reseller

A New York City businessman charged with raising $ 81 million in a Ponzi scheme based on claims of reselling tickets to the Broadway blockbuster Hamilton had ties to a company that partners with major ticket exchanges and sports teams.

Joseph Meli, 42, allegedly told investors he had an agreement with the producer to buy 35,000 tickets to acclaimed rap and hiphop musical about Alexander Hamilton and the American Revolution, according to a Securities and Exchange Commission civil complaint filed Friday.

Meli, co- defendant Matthew Harriton and three of their companies are also accused of telling the unwitting clients their investments would also include a concert by popular British singer and songwriter Adele, the complaint charged.

A $ 105 million private stock offering filed with the SEC in September by DTI Management listed Meli as a director of the ticket reselling company, which partners with Ticketmaster, StubHub, SeatGeek and other major ticket exchanges and sports teams, including the NBA’s Cleveland Cavaliers.

“DTI has not been contacted by any government officials and there is no allegation that we had any knowledge or involvement in the activities at issue,” Montieth Illingworth, a company spokesman, said Monday, adding that Meli was suspended over the weekend.

“DTI had no role with Mr. Meli in these other businesses, nor did any employee of the company,” said Illingworth. “Our association with Mr. Meli is recent and his role was narrow and limited and he did not bring any business to the company in the four months he worked with us.”

Promising to resell the seats at a profit, Meli and Harriton allegedly lured roughly 125 investors in 13 states with written contracts that promised full repayment of initial principal plus a 10% annualized profit. Federal investigators said the promises were fake. Meli and Harriton instead allegedly used funds from new investors to repay earlier ones, and also diverted money to jewelry purchases, Atlantic City casino payments and other personal expenses.

Federal prosecutors in New York City filed related criminal charges of conspiracy and securities fraud against Meli and Steven Simmons, though Simmons was not accused of being part of the alleged Hamilton portion of the investment scam.

Meli and Simmons were released after arraignments on respective $ 1 million bail packages secured by personal property.

WALTER MCBRIDE, WIREIMAGE Original Hamilton cast members ( from left) Leslie Odom Jr., Phillipa Soo, LinManuel Miranda and Ariana DeBose take a bow.

LARRY NEUMEISTER, AP Joseph Meli leaves federal court in New York after he was freed on $ 1 million bail in the alleged Ponzi scheme.