TUCSON, AZ (CelebrityAccess) — Federal prosecutors have charged an Arizona man with fraud in connection with his marketing and promotion of concerts around the U.S.
According to court filings, Frederick Stahmer, 54, is facing four counts of wire fraud over an alleged concert investment scheme related to his Oro Valley, Arizona-based business, Frederick Entertainment.
According to Stahmer’s federal grand jury indictment, Stahmer, who was formerly a musician, transitioned to promoting shows in 2011.
Prosecutors alleged that in 2013, Stahmer began selling multiple investors equity stakes in concerts he was promoting and using the invested cash for other purposes, including paying off investors from previous shows and expenses associated with concerts other than the event the money had been intended to finance.
Often, these equity stakes exceeded the available equity in a given show, with Stahmer sometimes promising than 100% of the profits from the show to different investors, prosecutors alleged.
As well, prosecutors claim that even though Stahmer’s business was not profitable at the time, he misrepresented its financial state to investors, including generating inaccurate profit and loss statements
According to prosecutors, Stahmer’s alleged schemes cost investors more than $1 million over the three-year period between 2013 to 2016.
Mr. Stahmer was unreachable for comment, and it is unclear if he has obtained legal representation.