Executives of Admit One LLC, an online ticket brokerage company for sports and entertainment events, have been charged with bank fraud for allegedly transferring more than $3 million from its business line of credit to its executive’s personal accounts, the Manhattan US Attorney’s office announced yesterday.
Leor Zahavi, of Flushing, and David Blumenson, of New Hyde Park, both face a maximum term of 95 years in prison, a maximum term of five years of supervised release, and a fine of up to $1 million if found guilty. The pair had been initially charged by complaint in November 2011.
The charges state that the company held a $6.5 million revolving line of credit at Bank of America. From August 2008 to January 2009, Zahavi and Blumenson engaged in a scheme to fraudulently transfer funds after losing millions in failed day-trading investments. To conceal the fraudulent transfers, they provided false documentation to BofA to make it appear as if Admit One had spent $3.45 million from the line of credit on “personal seat licences,” i.e., season ticket agreements.