Brown pleaded guilty to 17 wire fraud counts and two counts involving criminal proceeds. (Representational AI image)
An Ohio man has pleaded guilty to running a fake investment scheme that prosecutors say convinced five people in Ohio and Florida to hand over more than $3 million, US Attorney’s Office for the Northern District of Ohio said on Wednesday. John E Brown II, 45, from Brecksville, Ohio, told investors they could make money through a ‘rolling code ticket packages’ linked to sporting events and theme parks.
The supposed investment involved bundled admission tickets for experiences such as sports events and theme parks, according to officials. Prosecutors said Brown used several methods to make the investment opportunity appear genuine. Brown also told some investors that their ticket packages were insured against losses.
Brown claimed the value of these ticket packages could change depending on factors including the stock price of theme parks and how well a professional sports team was performing during a season. He involved other people who acted as successful investors or ‘code’ buyers. Their role was to help convince potential victims that the investment was legitimate and safe. Once investors agreed to put money into the scheme, Brown directed them to transfer the funds to his business bank accounts. This gave him control over the money that victims believed was being used for the ticket investments.