HOUSTON (CelebrityAccess MediaWire) – Promoter James Watson Jr. has been indicted by a federal grand jury on charges of bank and credit card fraud, in the wake of a failed festival.
Watson, 54, who is currently incarcerated in a federal prison in California for a similar scam involving the Sacramento Jazz Festival, was charged for his alleged involvement with the 2008 Texas Music Festival.
The Texas Music Festival was scheduled to take place at Eleanor Tinsley Pavilion in Houston from Aug. 30, 2008, to Sept. 1, 2008. The indictment alleges Watson was the principal organizer of the Festival and that he recruited individuals to invest more than $2 million and promised them a return of their principal plus a profit. In connection with the scheme, Watson used investors to engage in a $400,000 check kite at Bank of America, fraudulently and without authorization using the credit card number of one investor to make a charge on the card in exchange for another investor who believed the card was Watson’s, giving him cash.
According to the Houston Chronicle, the first two days of the three day festival reportedly went off as planned, but the final day was canceled. A post on the festival's website said that the event had been canceled due to inclement weather.
"For your safety we canceled a portion of the Texas Music Festival on Monday September 1st. We were informed of a storm that was approaching the area. We apologize for any inconvenience caused by the cancellation of this event. Your credit card will be credited back for your ticket purchase and service fee. Please allow 72 hours." the post said. It is unclear if refunds were ever issued.
The maximum penalty, upon conviction, for bank fraud is 30 years in prison and a fine up to $1 million. The maximum penalty for credit card fraud is 10 years imprisonment and a $250,000 fine. – CelebrityAccess Staff Writers
