In a major win, a Grossman LLP trial team led by Judd Grossman and Webster McBride secured a nearly $8 million securities-fraud judgment in a case arising from “a Ponzi scheme built on a false promise to buy and resell tickets to high-profile events like the Broadway musical ‘Hamilton.’”  This is the first and only judgment obtained by victims of the scheme, which according to the SEC diverted at least $74 million of the $97 million in funds it received from over 130 investors between 2015 and 2017.

Grossman LLP brought suit in 2017 on behalf of eleven investors against defendants Matthew Harriton, Joseph Meli, and several corporate entities under their control, after they had “raised millions from investors by promising big profits from reselling tickets to A-list events when in reality they were moving investor money in a circle and creating a mirage of profitability."  Nagelberg et al. v. Meli et al., 17-cv-02524 (LLS) (S.D.N.Y.).  Meli pleaded guilty to federal crimes for his role in the scheme and currently is serving a six-and-a-half-year sentence.  Harriton, however, argued that he was unaware of any fraudulent activities, and moved for summary judgment on the claims against him.

In June 2022, Judge Louis Stanton of the Southern District of New York denied the motion and set the case for trial.  In mid-February 2023, the Court entered judgment on the securities-fraud claims totaling $7.898 million, a total win representing 100 cents on the dollar.