WFAN New York Co-Host Craig Carton Charged with Running a Ponzi Scheme

CBS RADIO Sports WFAN-A-F/NEW YORK “BOOMER AND CARTON” co-host CRAIG CARTON was arrested at his home WEDNESDAY morning on charges that he and associates defrauded investors in an alleged Ponzi scheme.

THE NEW YORK POST is reporting that CARTON and business partner JOSEPH MELI have been accused by the SECURITIES AND EXCHANGE COMMISSION in a lawsuit of running a Ponzi scheme involving raising at least $5.6 million in funds from investors for a concert ticket sales business, using funds from new investors to pay off earlier investors and other debt, following CARTON allegedly running up millions of dollars of gambling debt.  CARTON and MICHAEL WRIGHT, who BLOOMBERG reports was also arrested along with CARTON on conspiracy and securities fraud charges, allegedly claimed that they had access to millions of dollars’ worth of face-value concert tickets they could resell; the POST reports that in an email sent to MELI and another person on SEPTEMBER 7, 2016, CARTON said he was “around $3 M in the whole (sic)” and that he had “risked and lost $700 (meaning $700,000) of investor money” and owed $825,000 “ASAP” and $500,000 on SEPTEMBER 12th to two casinos.  MELI was not named in the criminal complaint but was separately charged.

“We are aware of the situation and are cooperating with authorities,” said a CBS RADIO spokesperson.  Meanwhile, co-host BOOMER ESIASON did not initially refer to the arrest when speaking of CARTON’s absence WEDNESDAY morning, but joked about CARTON texting that he was “under the weather” and adding that when listeners hear ESIASON rather than CARTON starting the show, “that means numb nuts is under the weather and he’s not here. And basically what will be the longest week.”  But before the show was done, ESIASON said, according to BLOOMBERG’s report, “I thought he called in sick this morning, but unfortunately my partner was arrested.  I guess there’ll be more news to come from somewhere, but it won’t come from me because I don’t have any.”

The U.S. District Court Southern District of NEW YORK is expected to release more information later TODAY (9/6).