HOUSTON, TX (CelebrityAccess) — A Texas attorney and concert promoter plead guilty to a federal wire fraud charge on Friday over allegations that he took hundreds of thousands of dollars for concerts that never materialized.
Reed, who does business under the name Gabe Reed Productions, was arrested in May and charged with wire fraud and aggravated identity theft after he told investors musical artists had agreed to perform at concerts and that their funds would be used to provide up-front financing for the events.
According to the affidavit filed with the complaint, Reed solicited investors in concert events by touting longstanding relationships with well-known musicians, showing props from alleged previous tours, and, in some instances, creating fabricated financial records related to music events.
One Los Angeles investor agreed to put $100,000 into a concert tour Reed was calling “Titans of Rock.” However, many of the promised artists had not agreed to participate in the tour. An FBI review of bank records showed the victim’s money was used to pay for Reed’s personal expenses, including child support, costs related to a birthday, and meals at Ruth’s Chris Steakhouse and Mr. Chow in Beverly Hills, with no indication that it was used for concert expenses, according to the affidavit.
Reed's legal trouble began in August 2011 after an Ariel Vigo, an Argentinian concert promoter hit Reed with a lawsuit, alleging breach of contract. According to Vigo, Reed promised to bring a Motley Crue concert to Argentina for Vigo but instead, staged the concert with a different promoter in the market. The court granted a summary motion in the suit, awarding Vigo $1.4 million, but noted the difficulty of contacting Reed.
Reed also faced a lawsuit from Ava Zoller and her daughter Hannah Madison Taylor filed a lawsuit in Dallas County district court, alleging that Reed cost Zoller more than $357,000 over a failed concert deal. According to the Dallas Observer, Taylor and her mother received a favorable ruling in the case, but said that Reed had failed to produce money related to the judgement.
Reed plead guilty to the wire fraud charge on Friday as part of a plea agreement with the U.S. Attorney's Office in Los Angeles. “I am pleading guilty because I am guilty of the charge and wish to take advantage of the promises set forth in this agreement and not for any other reason,” Reed wrote.
As a result of the deal, the court will dismiss the remaining four counts against him and recommend less stringent sentencing guidelines, including a prison term no longer than the low end of the applicable sentencing guidelines.