Case 1:19-cr-00480-RA Document 1 Filed 04/24/19 Page 1 of 15
`
`Approved: ~79
`
`SARAH MORTAZAVI
`Assistant United States Attorney
`
`Before:
`
`THE HONORABLE HENRY PITMAN
`United States Magistrate Judge
`Southern District of New York
`- - - x
`
`UNITED STATES OF AMERICA
`
`SEALED COMPLAINT
`
`- v. -
`
`JOSEPH MELI, and
`JAMES SINISCALCHI,
`
`Defendants.
`
`Violation of
`18 u.s.c. §§ 2, 371,
`1343; 15 u.s.c. §§
`78j(b), 78ff; 17 C.F.R.
`§ 240.lOb-5
`
`COUNTY OF OFFENSE:
`NEW YORK
`
`- - - - - - - - - - - - - - - - - - x
`
`SOUTHERN DISTRICT OF NEW YORK, ss.:
`
`ANTHONY GIATTINO, being duly sworn, deposes and says
`that he is a Special Agent with the United States Attorney's
`Officer for the Southern District of New York ("SDNY"), and
`charges as follows~
`
`COUNT ONE
`(Conspiracy to Commit Securities Fraud and Wire Fraud)
`
`From at least in or about March 2017 through at
`1.
`least in or about April 2018, in the Southern District of New
`York and elsewhere, JOSEPH MELI and JAMES SINISCALCHI, the
`defendants, and others known and unknown, willfully and
`knowingly did combine, conspire, confederate and agree together
`and with each other to commit offenses against the United
`States, to wit, securities fraud, in violation of Title 15,
`United States Code, Sections 78j (b) & 78ff, and Title 17, Code
`of Federal Regulations, Section 240.lOb-5; and wire fraud, in
`violation of Title 18, United States Code, Section 1343.
`
`It was a part and object of the conspiracy that
`2.
`JOSEPH MELI and JAMES SINISCALCHI, the defendants, and others
`known and unknown, willfully and knowingly, directly and
`indirectly, by the use of the means and instrumentalities of
`
`

`

`Case 1:19-cr-00480-RA Document 1 Filed 04/24/19 Page 2 of 15
`
`2
`interstate commerce, and of the mails, and of facilities of
`national securities exchanges, would and did use and employ, in
`connection with the purchase and sale of securities,
`manipulative and deceptive devices and contrivances in violation
`of Title 17, Code of Federal Regulations, Section 240.lOb-5 by:
`(a) employing devices, schemes and artifices to defraud;
`(b)
`making untrue statements of material fact and omitting to state
`material facts necessary in order to make the statements made,
`in the light of the circumstances under which they were made,
`not misleading; and (c) engaging in acts, practices and courses
`of business which operated and would operate as a fraud and
`deceit upon persons, all in violation of Title 15, United States
`Code, Sections 78j (b) & 78ff, and Title 17, Code of Federal
`Regulations, Section 240.lOb-5.
`
`It was a further part and an object of the
`3.
`conspiracy that JOSEPH MELI and JAMES SINISCALCHI, the
`defendants, and others known and unknown, willfully and
`knowingly, having devised and intending to devise a scheme and
`artifice to defraud, and for obtaining money and property by
`means of false and fraudulent pretenses, representations, and
`promises, would and did transmit and cause to be transmitted by
`means of wire communication in interstate commerce writings,
`signs, signals, pictures and sounds for the purpose of executing
`such scheme and artifice, in violation of Title 18, United
`States Code, Section 1343.
`
`/
`
`Overt Acts
`
`In furtherance of the conspiracy and to effect
`4.
`the illegal objects thereof, JOSEPH MELI and JAMES SINISCALCHI,
`the defendants, and their co-conspirators committed the
`following overt acts, among others, in the Southern District of
`New York and elsewhere:
`
`In or about June 2017, SINISCALCHI caused an
`a.
`entity that he controlled ("SINISCALCHI Company-1") to enter
`into contracts to deliver, or to purchase with investor money,
`tickets to live events on behalf of Indio Entertainment, LLC
`("Indio"), for the purpose of reselling those tickets for a
`profit, and distributing the profits amongst investors.
`
`b. On or about June 13, 2017, a bank account
`controlled by SINISCALCHI Company-1 ("SINISCALSHI Account-1"),
`which was located in New York, New York, received wire transfers
`from a bank account controlled by Indio (the "Indio Account"),
`
`

`

`Case 1:19-cr-00480-RA Document 1 Filed 04/24/19 Page 3 of 15
`
`·'
`
`3
`totaling approximately $359,000. On or about June 14, 2017,
`SINISCALCHI sent a wire transfer in the amount of $90,000 to the
`bank account of a second entity controlled by.SINISCALCHI
`("SINISCALSHI Company-2").
`
`c. On or about June 26, 2017, SINISCALCHI
`Account-1 received a wire transfer from the Indio Account in the
`amount of $345,000.
`In or about June 2017, JAMES, SINISCALCHI,
`the defendant, sent a wire transfer in the amount of $10,000
`from SINISCALCHI Account-1 to SINISCALCHI's personal bank
`account.
`
`In or about February 2017, MELI arranged for
`d.
`a meeting between himself, his attorneys, and two individuals
`who later became the Chief Financial Officer ("PARTNER-1") and
`Chief Executive Officer ("PARTNER-2") of Indio, to discuss the
`merits of the ticket resale industry and MELI's ability to act
`as an advisor to any ticket resale business established by
`PARTNER-1 and PARTNER-2.
`
`(Title 18, United States Code, Section 371.)
`
`COUNT TWO
`(Securities Fraud)
`
`From at least in or about March 2017 through at
`5.
`least in or about April 2018, in the Southern District of New
`York and elsewhere, JOSEPH MELI and JAMES SINISCALCHI, the
`defendants, willfully and knowingly, directly and indirectly, by
`the use of means and instrumentalities of interstate commerce,
`the mails and the facilities of national securities exchanges,
`in connection with the purchase and sale of securities, did use
`and employ manipulative and deceptive devices and contrivances,
`in violation of Title 17, Code of Federal Regulations, Section
`240.lOb-5, by (a) employing devices, schemes and· artifices to
`defraud;
`(b) making untrue statements of material facts and
`omitting to state material facts necessary in order to make the
`statements made, in the light of the circumstances under which
`they were made, not misleading; and (c) engaging in acts,
`practices and courses of business which operated and would
`operate as a fraua and deceit upon persons, to wit, SINISCALCHI
`and MELI, defrauded Indio by falsely representing that they
`could procure, or had the ability to procure, tickets to
`theatrical events and concerts for resale on the secondary
`market, and in turn caused representatives of Indio to make
`fraudulent repres~ntations to investors regarding, the same, and
`
`

`

`Case 1:19-cr-00480-RA Document 1 Filed 04/24/19 Page 4 of 15
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`4
`subsequently misappropriated investor funds for their own
`personal use.
`
`(Title 15, United States Code, Sections 78j (b) & 78ff; Title 17,
`Code of Federal Regulations, Section 240.lOb-5; and Title 18,
`United States Code, Section 2.)
`
`COUNT THREE
`(Wire Fraud)
`
`From at least in or about March 2017 through in
`6.
`or about April 2018, in the Southern District of New York and
`elsewhere, JAMES SINISCALCHI and JOSEPH MELI, the defendants,
`willfully and knowingly, having devised and intending to devise
`a scheme and artifice to defraud, and for obtaining money and
`property by means of false and fraudulent pretenses,
`representations, and promises, would and did transmit and cause
`to be transmitted by means of wire communication in interstate
`co:mrci.erce writings, signs, signals, pictures and sounds for the
`purpose of executing such scheme and artifice, to wit,
`SINISCALCHI and MELI, SINISCALCHI and MELI, defrauded Indio by
`falsely representing that they could procure, or had the ability
`to procure, tickets to theatrical events and concerts for resale
`on the secondary market, and in turn caused representatives of
`Indio to make fraudulent representations to investors regarding
`the same, and subsequently misappropriated investor funds for
`their own personal use.
`
`(Title 18, United States Code, Sections 1343 & 2.)
`
`The bases for my knowledge and for the foregoing charges
`are, in part, as follows:
`
`I am a Special Agent employed by the U.S.
`7.
`Attorney's Office for the Southern District of New York.
`I have
`been a Special Agent with the U.S. Attorney's Office for the
`Southern District of New York for approximately two years.
`Prior to joining the U.S. Attorney's Office, I was a Special
`Agent with the Department of Homeland Security, Homeland
`Security Investigations (~DHS/HSI") for approximately eight
`years.
`I was assigned to a financial cybercrime squad in
`DHS/HSI's New York Field Office from 2012 to 2017.
`
`I am familiar with the facts and circumstances
`8.
`set forth below from my personal participation in the
`investigation, including my examination of reports and records,
`
`

`

`Case 1:19-cr-00480-RA Document 1 Filed 04/24/19 Page 5 of 15
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`5
`interviews I have conducted, and conversations with another law
`enforcement officer and other individuals. Because this
`affidavit is being submitted for the limited purpose of
`establishing probable cause, it does not include all the facts
`that I have learned during the course of my investigation. Where
`the contents of documents and the actions, statements, and
`conversations of others are reported herein, they are reported
`in substance and in part, unless noted otherwise.
`
`RELEVANT ENTITIES AND INDIVIDUALS
`
`Indio is a limited liability corporation
`9.
`incorporated in Delaware that is engaged in the business of bulk
`purchasing tickets to live events, including concerts and
`theatrlcal productions, on behalf of investors, and reselling
`those tickets on the secondary market for profit. On or about
`May 8, 2017, Indio was incorporated by two partners ("PARTNER-1"
`and "PARTNER-2") . Based upon my review of promotional materials
`prepared by Indio and other records of emails and Whatsapp
`communications, and from my conversations with PARTNER-1,
`I have
`learned that, as of at least in or about March 2017, JOSEPH
`MELI, the defendant, was an advisor to Indio, and as of at least
`in or about June 5, 2017 through at least in or about November
`2017, JAMES SINISCALCHI, the defendant, who is a relative of
`MELI's, was the Chief Compliance Officer of Indio.
`
`10. Based on my review of records from the New York
`State Department of State, I have learned that in or about June
`2017, four companies were registered in New York, New York with
`the New York State Department of State under the same address
`("Address-1"): SINISCALCHI Company-1, SINISCALCHI Company-2,
`SINISCALCHI Company-3, and SINISCALCHI Company-4. Based on my
`participation in this investigation and my review of bank
`account records associated with JAMES SINISCALCHI, the
`defendant, as well as my review of law enforcement databases, I
`have learned that Address-1 is a rental apartment used by
`SINISCALCHI.
`
`11. Based on my review of court records and my
`discussions with law enforcement officers, I have learned that
`on or about January 26, 2017, JOSEPH MELI, the defendant, was
`charged in the U.S. District Court for the Southern District of
`New York for, among other offenses, committing securities and
`wire fraud between in or about November 2015 through in or about
`January 2017, in violation of Title 18, United States Code,
`Sections 371, 1343 and 2, Title 15, United States Code, Sections
`
`

`

`Case 1:19-cr-00480-RA Document 1 Filed 04/24/19 Page 6 of 15
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`6
`78j (b) & 78ff, and Title 17, Code of Federal Regulations,
`Section 240.lOb-5, through his operation of a company (the "MELI
`Company") which purported to be in the business of purchasing
`and reselling for profit tickets to various live events
`including concerts and theatrical productions (the "2017
`Criminal Case"). On or about October 31, 2017, MELI pled guilty
`before the Honorable Barbara Moses, United States Magistrate
`Judge, to one count of securities fraud. From my review of
`MELI's plea allocution on or about October 31, 2017, I have
`learned that MELI stated the following under oath:
`
`"Starting in about 2015 in New York, I
`a.
`misled investors, and I took inappropriate business by
`soliciting their investments with false documents. I represented
`to certain investors that I had formal written contracts to
`purchase bulk tickets to live events. Those formal contracts did
`not always exist as I represented. In some cases, I showed
`investors contracts that appeared to be signed by people who had
`not signed them. And in some cases, those contracts did not
`accurately reflect the true agreements related to my bulk
`purchases of live events. I knew what I was doing was wrong
`
`fl
`
`OVERVIEW OF THE FRAUDULENT SCHEME
`
`JOSEPH MELI and JAMES SINISCALCHI, the
`12.
`defendants, induced PARTNER-1 and PARTNER-2 to enter into a
`business arrangement and to provide MELI and SINISCALCHI. with
`investor funds through false and misleading representations and
`omissions, including, among other things, the following:
`
`a. MELI and SINISCALCHI represented to PARTNER-
`1 and PARTNER-2, directly and indirectly in substance and in
`part, that they owned tickets to live events, or that they(cid:173)
`through their industry connections-had the ability to procure
`tickets to live events with investor funds provided by Indio for
`the purpose of reselling those tickets on the secondary market
`and distributing the profit amongst investors.
`In truth and in
`fact, SINISCALCHI and MELI did not procure tickets for India's
`resale and misappropriated investor funds paid to SINISCALCHI
`Company-1 for the purpose of purchasing tickets.
`
`b. MELI further represented to PARTNER-1 and
`PARTNER-2, directly and indirectly, in substance and in part,
`that the 2017 Criminal Case against MELI was the result of an
`accountin~ error and that MELI, through the MELI Company, in
`
`

`

`Case 1:19-cr-00480-RA Document 1 Filed 04/24/19 Page 7 of 15
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`7
`fact owned tickets to live events that MELI was willing to sell
`to INDIO for purposes of resale on the secondary market on
`behalf of Indio's investors.
`In truth and in fact, MELI had no
`such bulk tickets for live events, the 2017 Criminal Case was
`not the result of an accounting error, and MELI did not acquire
`tickets to live events on behalf of Indio as promised.
`
`FORMATION OF INDIO
`
`From my discussions with PARTNER-1, and my review
`13.
`of documents and records, including emails and bank account
`records, I have learned, among other things, the following:
`
`In or about December 2016, PARTNER-1 and
`a.
`PARTNER-2 discussed founding and operating a business involved
`in soliciting investor funds in order to purchase, and resell
`for profit, tickets to various live events, including concerts
`and theatrical productions.
`
`In or about February 2017, in order to
`b.
`convince PARTNER-1 that the business was viable, PARTNER-2
`arranged for a meeting with, among others, PARTNER-1, PARTNER-2,
`JOSEPH MELI, the defendant, and MELI's attorneys. During that
`meeting, MELI's attorneys stated, in substance and in part, and
`on behalf of MELI, the following:
`
`l .
`for his operation of a
`sloppy accounting, not
`Criminal Case would be
`
`The criminal charges filed against MELI
`ticket resale business were the result of
`the product of fraud, and the 2017
`resolved.
`
`The MELI Company had purchased tickets
`i i .
`to a theatrical production (~Show-1"). MELI's aftorneys were
`assisting MELI and the MELI Company in selling those tickets.
`
`Notwithstanding the pending charges
`iii.
`against MELI, MELI could act as an adviser to any ticket resale
`company formed by PARTNER-1 and PARTNER-2.
`
`In approximately March 2017, PARTNER-1 and
`c.
`PARTNER-2 formed Indio, a limited liability company that would
`be engaged in the business of buying and reselling for profit
`tickets to live events.
`
`14. Based on my participation in this investigation,
`including my discussions with PARTNER-1 and my review of emails
`
`

`

`Case 1:19-cr-00480-RA Document 1 Filed 04/24/19 Page 8 of 15
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`8
`I have learned, among
`associated with PARTNER-1 and PARTNER-2,
`other things, that JOSEPH MELI, the defendant, provided advice
`and guidance to PARTNER-1 and PARTNER-2 regarding the
`establishment of Indio and remained involved in India's
`operations from at least in or about March 2017 through at least
`in or about March 2018. For example, on or about March 20,
`2017, MELI sent PARTNER-2 an email with the subject line,
`"change names and events," writing, in the body of the email,
`"call me and I will work thru a bunch of these changes with
`you." Attached to this email were several documents, including
`a draft contract that appeared to be between the MELI Company(cid:173)
`described in the document as a company "in the business of
`purchasing and reselling tickets to concerts and other live
`events"-and a potential investor, for the purchase of tickets to
`the 2017-18 Broadway performances of Show-1. From my review of
`India's funding agreements with investors, I have learned that
`Indio used the MELI Company draft contract that MELI had
`forwarded as its template .for its funding agreements.
`
`15. At least in or about March 2017, JAMES
`SINISCALCHI, the defendant, a relative of JOSEPH MELI, the
`defendant, joined Indio as the Chief Compliance Officer.
`From
`my participation in this investigation, including my review of
`emails, chat messages, and other documents, as well as from my
`conversations with PARTNER-1,
`I have learned that SINISCALCHI
`stated to PARTNER-1, in substance and in part, that Indio did
`not have the name recognition to effectively negotiate bulk
`ticket purchasing deals with rights holders.
`SINISCALCHI
`represented that SINISCALCHI Company-1 had the name recognition
`and relationships to effectively negotiate bulk ticket
`purchasing deals with rights holders on India's behalf. Based
`on these representations, and as discussed further below,
`PARTNER-1 and PARTNER-2, on behalf of Indio, entered into a
`number of purchase agreements with SINISCALCHI Company-1 to
`purchase tickets with investor money.
`
`SOLICITATION OF INVESTOR-VICTIMS AND TRANSFER OF INVESTOR FUNDS
`
`16. Based on my participation in this investigation,
`including my review of documents obtained during the
`investigation and my discussions with victim-investors and
`PARTNER-1,
`I have learned, among other things, that, beginning
`at least in or about April 2017, PARTNER-1 and PARTNER-2
`approached potential investors to discuss investing in Indio and
`made representations regarding India's ability to execute the
`bulk purchase of tickets and projected returns for an investment
`
`

`

`Case 1:19-cr-00480-RA Document 1 Filed 04/24/19 Page 9 of 15
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`9
`in the bulk purchase of tickets through Indio, in reliance on
`statements made by JOSEPH MELI and JAMES SINISCALCHI, the
`defendants, regarding ticket investment opportunities to which
`they had access.
`
`From my review of bank account records, funding
`17.
`agreements between Indio and investors and contracts between
`Indio and SINISCALCHI Company-1, and other related documents, I
`have learned, among other things, the following:
`
`From in or about April 2017 through in or
`a.
`about June 2017, PARTNER-1 solicited investors for investments
`in the purchase and resale of tickets to Show-1 and another
`theatrical Broadway show ("Show-2") through Indio. In or about
`June 2017, at least five individuals I believe to be investors
`in Indio (the "Victims") entered into funding agreements with
`Indio for the purpose of funding the bulk purchase of tickets to
`Show-1 and Show-2 for resale on the secondary market, and wired
`a total of approximately $542,000 for the purchase of tickets to
`the Indio account, located in New York, New York.
`
`In or about June 2017, Indio entered into
`b.
`contracts with SINISCALCHI Company-1 for the purchase of
`approximately 2,170 tickets to Show-1, and approximately 1,900
`tickets to Show-2.
`In total, approximately $867,000 was
`transferred from the Indio Account to SINISCALCHI Account-1 in
`or about June 2017 to fund the bulk purchase of tickets for
`resale.
`
`18. Based on my participation in this investigation,
`including my review of documents obtained during the
`investigation and my discussions with several victim-investors
`and PARTNER-1,
`I have learned, among other things, the
`following:
`
`In or about August 2017, PARTNER-1 solicited
`a.
`investors for investments in the purchase and resale of tickets
`to a live concert ("Show-3") through Indio.
`In or about August
`2017, some of the Victims entered into funding agreements with
`Indio for the purpose of funding the bulk purchase of tickets to
`Show-3 for resale on the secondary market, and wired a total of
`approximately $340,000 for the purchase of tickets to the Indio
`account, located in New York, New York.
`
`b. Based on my review of bank account records,
`I have learned that between on or about August 28 and on or
`
`

`

`Case 1:19-cr-00480-RA Document 1 Filed 04/24/19 Page 10 of 15
`
`10
`about August 30, 2017, approximately $440,000 was transferred
`from the Indio Account to an account controlled by SINISCALCHI
`Company-3 to fund the bulk purchase of tickets for resale. 1
`
`WHATSAPP COMMUNICATIONS
`
`19. Based on my participation in this investigation
`and my discussions with PARTNER-1,
`I have learned that PARTNER-
`1, PARTNER-2, and JOSEPH MELI and JAMES SINISCALCHI, the
`defendants, communicated with each other by sending instant
`messages over the smartphone application Whatsapp. Based on my
`review of Whatsapp communications and my discussions with
`PARTNER-1, I have learned that MELI was referred to in the
`aforementioned communications as "kayser," "kaiser," or "k."
`From my discussions with PARTNER-1,
`I have learned that these
`were variations of MELI's nickname, "Keyzer Soze," a reference
`to a fictional criminal kingpin.
`I have also learned that JAMES
`SINISCALCHI, the defendant, was referred to as "J" or "jay," a
`variation of his first name. Based on my review of the
`aforementioned Whatsapp communications, I have learned, in
`substance and in part, the following:
`
`a. On or about August 11, 2017, the following
`Whatsapp messages were exchanged in a group chat between
`SINISCALCHI, PARTNER-1, and PARTNER-2:
`
`TIME
`3:41 PM
`
`SENDER
`PARTNER-1
`
`~
`
`3:42 PM
`
`PARTNER-1
`
`3:43 PM
`
`PARTNER-1
`
`3:47 PM
`
`PARTNER-2
`
`MESSAGE
`K obviously has control of cash
`being sent to Indio.
`rather than it
`I'm putting myself out to clients
`that we are buying rights and
`selling tickets, instead it appears
`we are solely financing operations
`This puts us in a serious position
`as regards liability
`We seem to be chasing our tails
`here ...
`
`We have a silent partner in indio
`that is providing the rights access
`to the inventory and expertise to
`
`1 0n or about November 6, 2017, approximately $150,000 was sent
`from an account controlled by SINSCALCHI Company-3 to the Indio
`Account.
`
`

`

`Case 1:19-cr-00480-RA Document 1 Filed 04/24/19 Page 11 of 15
`
`11
`us to sell those tickets via
`'
`distribution channel relationships.
`
`Based on my participation in this investigation, I believe
`that in the communications above, PARTNER-2's reference to "k"
`having "control of cash" and PARTNER-2's reference to having "a
`silent partner in indio" are both references to JOSEPH MELI, the
`defendant, taking possession of investor funds for the purpose
`of purchasing tickets in bulk.
`
`On or about August 21, 2017, the following
`b.
`Whatsapp messages were exchanged in a group chat between
`SINISCALCHI, PARTNER-1, and PARTNER-2, discussing Show-3:
`
`TIME
`8:18 PM
`
`SENDER
`SINISCALCHI
`
`9:29 PM
`9:31 PM
`
`PARTNER-2
`PARTNER-1
`
`9:32 PM
`
`PARTNER-1
`
`MESSAGE
`Circling back on the question about
`Indio doing direct deals - Until we
`have the cash to take on really
`substantial positions such that
`direct intros and a hand off can be
`made, we will still need to work
`through our contacts and the deals
`will have to stay indirect
`***
`K is meeting theatre owner today
`So sale price of 850*1.9? Which is
`$1,615?
`I hope mtg goes well with theatre
`owner ....
`
`Based on my participation in this investigation, I believe
`that in the communications above, SINISCALCHI is stating that
`Indio cannot directly purchase tickets to live events in bulk
`but "will have to stay indirect" because Indio does not have a
`sufficiently high sum of investor funds to directly negotiate
`with rights holders for tickets to live events. Based on the
`foregoing, I also believe that PARTNER-2's reference to "k" is a
`reference to JOSEPH MELI, the defendant, and that the reference
`to the "theatre owner" is a reference to the owner of the
`theatre where Show-3's performances were held ("Show-3
`Theatre"). Based on my discussion with a representative of the
`Show-3 Theatre, I have learned that MELI did not meet with a
`representative of the Show-3 Theatre.
`
`

`

`Case 1:19-cr-00480-RA Document 1 Filed 04/24/19 Page 12 of 15
`
`.
`
`,,
`
`. ...
`
`·s·EN DER " ·,
`PARTNER-1
`
`12
`On or about August 22, 2017, the following
`d.
`Whatsapp messages were exchanged in a group chat between
`SINISCALCHI, PARTNER-1, and PARTNER-2, discussing Show-3:
`. .
`.
`. ,,_-
`..
`..,_ ..
`T:IMK
`·MESSAGE
`3:49 PM
`So, [Victim-;nvestor] will invest
`but he lS concerned that when Indio
`pays Roghts [sic] Holders if it is
`going to the same bank account.
`Not the case.
`Can I tell him Indio is paying a
`different party to the party paid
`for [ Show-1] and [Show-2]?
`Yes.
`So, it will not go to [SINISCALCHI
`Company-1]?
`Anyway, if we can prove that, then
`[Victim-Investor] will invest
`$150,000
`It will go to another rights holder
`inside the theatre I distributor
`camp since we figure it out
`***
`He is concerned about new
`investment being used to pay out
`older investments. So as long as
`Indio is buying [Show-3] rights
`from another party, and money is
`wired to them, we are fine
`Yes it's a different camp .. as
`communicated by j
`***
`Jay, can you confirm that we will
`send the rights holder funds to a
`separate account to where we've
`sent it before? Also, if money is
`needed to be wired by Friday, Indio
`needs a Rights Holder agreement to
`review.
`This is a real tie deal guys -
`[Rights Holder Agreement] is
`developing based on the deal we are
`negotiating ...
`Re the Rights holder - yes it's a
`lock that this will be from a
`diffgnmt cornp2ny
`
`3:49 PM
`3:49 PM
`
`PARTNER-2
`PARTNER-1
`
`3:50 PM
`3:50 PM
`
`PARTNER-2
`PARTNER-1
`
`3:51 PM
`
`PARTNER-1
`
`3:51 PM
`
`PARTNER-2
`
`3:53 PM
`
`PARTNER-1
`
`3:57 PM
`
`PARTNER-2
`
`4:10 PM
`
`PARTNER-1
`
`4:12 PM
`
`SINISCALCHI
`
`the
`
`4:13 PM
`
`SINISCALCHI
`
`

`

`Case 1:19-cr-00480-RA Document 1 Filed 04/24/19 Page 13 of 15
`
`13
`
`e. On or about September 26, 2017, PARTNER-1
`sent a Whatsapp message to PARTNER-2 and SINISCALCHI, stating:
`"Let's talk with Kand get all projection sheets where they need
`to be."
`
`f. Based on my participation in this
`investigation, I believe that in the communications described in
`subparagraphs d and e, PARTNER-1 is relaying to SINISCALCHI and
`PARTNER-2 concerns raised by one of the Victims ("Victim-1")
`that the money invested to purchase bulk tickets to Show-3 would
`go to a third party unrelated to the rights holder who had sold
`Indio bulk tickets to Show-1 and Show-2.
`I also believe that in
`the aforementioned communication, SINISCALCHI provides assurance
`to PARTNER-1 and PARTNER-2 that investor money would be used to
`pay "a different company" and "a different camp" than the rights
`holder who had purportedly sold SINISCALCHI Company-1 bulk
`tickets to Show-1 and Show-2. Based on my review of notes taken
`from an interview of Victim-1, I have learned that Victim-1 was
`told by PARTNER-1, in substance and in part, that Victim-l's
`funds would be paid directly to the rights holder and would not
`be paid to a "pass-through" company.
`In truth and in fact,
`investor funds for Show-1, Show-2, and Show-3 were all paid to
`companies owned and controlled by SINISCALCHI, and SINISCALCHI
`did not use the investor funds to purchase bulk tickets from
`rights holders.
`
`INDIO FAILS TO DISTRIBUTE RETURNS OR REPAY INVESTOR FUNDS
`
`20. Based on my review of bank records, email
`communications, Whatsapp messages, and discussions with some of
`the Victims, I have learned, in substance and in part, that
`JAMES SINISCALCHI and JOSEPH MELI, the defendants, never
`delivered tickets to Indio for Show-1, Show-2, or Show-3, nor
`did SINISCALCHI Company-1 show proof of purchase for tickets to
`Show-1, Show-2, or Show-3, or repay the investor funds obtained
`for the purchase of tickets to Show-1, Show-2, or Show~3. As a
`result of SINISCALCHI and MELI's failure to provide tickets,
`Indio repeatedly missed deadlines to provide investor returns
`and was unable to provide sufficient and legitimate explanations
`for the delays or proof that tickets were purchased, despite
`repeated inquiries and demands from the Victims.
`
`21. Based on my discussions with the representatives
`of the Show-3 Theatre, and representatives of the theatres where
`Show-1 and Show-2 were held (together, the "Theatres"), I have
`
`

`

`Case 1:19-cr-00480-RA Document 1 Filed 04/24/19 Page 14 of 15
`
`14
`learned that the Theatres did not enter into any contracts with
`JOSEPH MELI or JAMES SINISCALCHI, the defendants, Indio, or the
`SINISCALCHI Companies for the bulk purchase of tickets for Show-
`1, Show-2, or Show-3.
`
`22. Based on my review of records for the Indio
`Account, SINISCALCHI Account-1, an account controlled by
`SINISCALCHI Company-2
`("SINISCALCHI Account-2"), an account
`controlled by SINISCALCHI Company-3 ("SINISCALCHI Account-3"),
`and an account controlled by SINISCALCHI Company-4
`("SINISCALCHI
`Account-4"), I have learned that none of the invested funds were
`utilized to purchase tickets to Show-1, Show-2, or Show-3.
`From
`my review of the aforementioned accounts, I have also learned
`that at least between in or about June 2017 through in or about
`May 2018, substantial funds from the SINISCALCHI Accounts were
`utilized for JOSEPH MELI'S and JAMES SINISCALCHI's, the
`defendants', personal expenditures, including, among other
`things:
`
`Between in or about June 2017 and in or
`a.
`about January 2018, a total of approximately $526,000 was
`withdrawn in cash, or cashier's checks made to cash, from
`SINISCALCHI Account-1~
`
`On or about July 27, 2017, a wire transfer
`b.
`for approximately $150,000 was sent from SINISCALCHI Account-1
`to a bank account controlled by a law firm that represented MELI
`in connection with MELI's 2017 Criminal Case, with the notation
`"J. Meli."
`
`Between in or about June 2017 and in or
`c.
`about December 2017, wire transfers totaling appro~imately
`$449,000 were sent to a bank account controlled by an entity
`whose principal is a close relative of MELI's.
`
`On or about November 9, 2017, a wire
`d.
`transfer for $455,000 was sent to a bank account controlled by
`an individual who, on or about November 10, 2017, issued himself
`a cashier's check for $455,000 and closed the account.
`
`Between in or about June 2017 and in or
`e.
`about May 2018, wire transfers totaling approximately $143,000
`were sent from SINISCALCHI Account-1, SINISCALCHI Account-2, and
`SINISCALCHI Account-3 to a bank account in SINISCALCHI's name.
`
`

`

`Case 1:19-cr-00480-RA Document 1 Filed 04/24/19 Page 15 of 15
`
`15
`Between at least on or about May 11, 2017
`f.
`through on or about May 31, 2018, cashier's checks totaling
`$105,000 were issued from SINISCALCHI's personal account to a
`residential management company ("Entity-1") that managed an
`apartment MELI was leasing at the time.
`
`Between in or about July 2017 through in or
`g.
`about December 2017, Cashier's checks totaling $116,500 were
`issued from SINISCALCHI Account-1 to Entity-1.
`
`On or about October 10, 2017, a wire
`h.
`transfer of $75,000 was sent from SINISCALCHI Account-1 to
`SINISCALCHI Account-2.
`
`WHEREFORE, deponent respectfully requests that warrants be
`issued for the arrests of JAMES SINISCALCHI and JOSEPH MELI, the
`defendants, and that they be arrested, and imprisoned or bailed,
`as the case may be.
`
`ony Giattino
`Special Agent
`United States Attorney's Office for the
`Southern District of New York
`
`Sworn to before me this
`day of April, 2019
`),.f-
`
`