New facts have come to light about the $81 million Ponzi scheme that promised investors significant returns through the 'can't miss strategy' of buying “Hamilton” tickets in bulk and reselling them at enormous profits. The SEC first announced it had cracked the scheme [See Financialish.com, 1/29/17]and charged the ringleaders - 2 NYC con men named Joseph Meli and Matthew Harriton.

Today, we learn from Bloomberg that federal prosecutors have filed criminal charges report in the case, and that several high-profile billionaires and business executives were among the 125 investors caught up in the scam,

• Paul Tudor Jones, the legendary hedge fund manager who made billions for himself and his investors in Tudor Investment Corp. - his fund currently manages some $11 billion.
• Michael Dell, who has an estimated net worth of 19.6 billion, and the company he founded, Dell Technologies, is the world’s largest closely held tech company. He also helped start the Robin Hood Foundation, a charity whose goal is to end poverty in New York City.
• Boaz Sidikaro, an executive managing director at Och-Ziff Capital Management.

CRIMINAL INDICTMENTS.   Federal Prosecutors files charges against 3 men – (i) Joseph Meli, a NY event promoter and Hamptons socialite who once ran a $3,000-a-ticket concert series in the enclave, featuring Billy Joel, Prince and James Taylor; (ii) Steven Simmons, allegedly the middleman tasked with raising money from investors for hedge funds; and, (iii) Mark Varacchi, an investment fund manager whose firm was based in Connecticut, who pleaded guilty to fraud on Wednesday and was released on $250,000 bail.

The scam lasted at least 2 years, according to the parallel civil case filed by the SEC against Meli and Matthew Harriton - the latter wasn't named in the criminal case.

Meli, 42, reportedly used his music connections to ingratiate himself with Wall Street traders. He hung out at the exclusive Bridgehampton Tennis and Surf Club and said he’d get tickets to “Hamilton” and other shows for his friends. Meli lied to at least one victim, claiming he had access to another 35,000 tickets for “Hamilton” and could sell them at a markup

Meli also lured potential victims by claiming other high-profile investors including Och-Ziff had bought in, according to people who said he approached them. One said he was shown a contract with the hedge fund’s name on it. Executives there considered investing on behalf of clients but passed, according to a person with knowledge of the firm. However one Och-Ziff executive, Boaz Sidikaro – an executive managing director, who’s been at the firm almost 20 years - was friends with Meli and invested personally.

It’s rare that any Ponzi scheme ensnares business luminaries so highly skilled in the art of scrutinizing investment pitches. But to veteran securities lawyers, the case has some of the hallmarks of an affinity fraud like Bernard Madoff’s - in which a con man’s familiarity can help instill trust, even with a pitch that sounds too good to be true.