MIAMI (CelebrityAccess MediaWire) — The Securities & Exchange Commission appears to have moved into their endgame against former promoter Jack Utsick and his Wordlwide Entertainment. On September 9th, the SEC filed a motion, requesting a final judgement in the case, seeking $5,080,450 in disgorgement, interest and penalties from Utsick, contending that he used "ill-gotten gains" from investment schemes to bankroll his lavish lifestyle.
The filing was buttressed by two affidavits from court-appointed receiver Michael Goldberg and forensic accountant Andrew Bernstein. that detail Utsick's use of money from his two firms, Worldwide Entertainment, Inc., and The Entertainment Group Fund, Inc. as well as two firms run by Robert and Donna Yeager, two friends of Utsick.
Among the list of expenditures detailed in the affidavits were:
$33,957 for artwork for Utsicks' condominium that he appears to have subsequently resold after Worldwide went into receivership, pocketing the proceeds.
$400,000 to Utsick’s personal attorneys.
More than $120,000 in regular monthly condominium maintenance fees for seven years on a condominium Utsick had his companies purchase in 1998 for him to live in.
Almost $200,000 on expenses related to a yacht Utsick had his companies buy for him.
More than $400,000 in American Express credit card expenses for items such as magazine subscriptions, meals at expensive restaurants, travel expenses for Utsick's girlfriend,
$112,500 for a personal loan to Utsick to which there is no record of repayment.
$423,582 in child support and alimony to Utsick's former wife Maria.
$4,800 for two visits to a Venezuela "adult entertainment" establishment called Diva's club.
The source of this money for Utsick was from at least 3,300 investors who from 1998 to 2005 invested $300 million in Utsick's two companies for a share of Utsick projects, including tours by major artists that he was promoting and promising returns of at least 15-25% annually. Instead, the money was co-mingled used to fuel Utsick's lavish lifestyle.
"At no time did Utsick and the other defendants tell investors they would use investor money to make Utsick’s alimony and child support payments, pay for his girlfriend to take expensive trips around the world, buy clothes, go grocery shopping, pay for a luxury condominium, purchase life insurance policies, pay personal legal and accounting bills, and enjoy the myriad other personal uses to which Utsick chose to put investor money. Accordingly, it is appropriate for the Court to order Utsick to disgorge the amount of investor funds he put to personal use." wrote attorney for the plaintiff Robert Levenson in the request for judgement.
Utsick has conceded that the allegations were factual and has requested and received an extension until Oct. 27 to respond. – CelebrityAccess Staff Writers