The former CEO and COO of The Ticket Reserve have settled fraud charges in a scheme defrauding pro athletes including Mark Sanchez, former New York Jets quarterback.
The execs aided an investment advisor, Ash Narayan of Newport Coast, California, who was earlier fined for stealing $30 million from clients and investing it in The Ticket Reserve, of which he was a board member.
The U.S. District Court for the Northern District of Texas last week entered consent judgments in the SEC case against former CEO Richard Harmon and former COO John Kaptrosky.
The final judgment against Harmon, who was also Chairman of TTR’s Board of Directors, ordered him to pay $945,000, including $620,000 in disgorgement and prejudgment interest and a $325,000 civil penalty.
Monetary remedies against Kaptrosky will be determined by the court at a later time.
Harmon and Kaptrosky participated in the scheme by making undisclosed finder’s fee payments to Narayan out of his clients’ funds and covertly describing them as “director’s fees” and “loans” in various company documents.