Pollstar — A concert promoter who operated as Dallas-based Gabe Reed Productions has reportedly been sentenced 57 months in federal prison after pleading guilty to wire fraud for defrauding investors, promoters and performers who invested in concerts and World Wrestling Entertainment events.
Reed previously admitted in court that he received money fromvictims after falsely telling them that events would take place, certain performers had agreed to participate in those events, and their money would be used to organize the events, according to statement from the United States Attorney’s Office.
Pollstar reported in October that Reed had intended to plead guilty, reportedly saying in a written statement: “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.”
According to the plea agreement obtained by Pollstar, from 2008 to 2017, Reed defrauded investors out of money that was to be used on concerts by artists that ultimately weren’t booked and shows that didn’t happen or were designed to later be canceled.
Instead, Reed “used the victims’ funds to pay his personal expenses, including payment of his rent, utility bills, and travel expenses, which he failed to disclose to the victims,” the plea agreement states.
Reed acted as a promoter and organizer of concerts as well as WWE wrestling for more than eight years, according to a release from the U.S. Department of Justice.
Pollstar has about 10 box office reports with Gabe Reed Productions as promoter or co-promoter, all in South America, including a KISS show from 2009 in Chile, four Motley Crue shows in 2011 (Brazil, Argentina, Chile) and four Vince Neil shows from 2010. The company is also listed as producing “Metal All Stars” and “Rock N Roll All Stars” tours.
The agreement says Reed used “sophisticated means” to defraud his victims, including creating false email addresses in the name of other people and entities. The plea agreement names one Los Angeles investor who agreed in 2015 to put $100,000 into a “Titans of Rock” tour Reed was pitching, only to find that many of the promised artists had not agreed to participate.
According to the United States Attorney’s Office, the FBI reviewed bank records that showed the victim’s money was used to pay for Reed’s personal expenses, including child support, costs related to a birthday party, and meals at Ruth’s Chris Steakhouse and Mr. Chow in Beverly Hills, according to an affidavit previously filed in this case.
An affidavit filed in support of the criminal complaint alleges Reed solicited investors in concerts by dropping names and boasting of relationships with famous artists, showing off tour swag and in some cases fabricating financial records related to concerts. His apparent Twitter page, active as of June 2016, shows photos of him rubbing elbows with rock stars like Ace Frehley and apparently attending Ronnie James Dio’s memorial service. – Ryan Borba
Above content and article courtesy of Pollstar
Metal Sludge previously reported on this story back on May 2nd 2017 “Investors Beware! – Rock Promoter Gabe Reed arrested by FBI, being held in Texas jail.”
A follow up article was posted on October 1st 2017 “The Guilty Years – Rock Promoter Gabe Reed admits guilt in concert scandal“.
Gabe Reed was part of the wanna-be rock stars interviewed in The Decline Of Western Civilization – Part 2 The Metal Years.
Reed is featured in a infamous clip, sporting two-tone hair as seen below courtesy of youtube.