Breaking: REBECCA Middle-Man Financier Mark Hotten Arrested

[Rob]

Click Here to Read Breaking News: REBECCA Middle-Man Financier Mark Hotten Arrested Today

[Wynbish]

The drama behind the scenes may be funner to watch than the drama that would have been on stage.

[WiCkEDrOcKS]

Craziness!

[EponineAmneris]

Max and Leo will straighten him out

[Playbilly]

I can't wait for the "American Greed" episode.

[Patash]

I'm curious if people who bought tickets in advance are getting their money back -- or was that part of the whole scam too?

[PalJoey]

It doesn't sound as if Hotten netted much more than $100,000...or am I missing something here?

[wonkit]

This unfortunately makes the producers look unsophisticated, desperate and/or foolish. They didn't do the due diligence required of them, and scammers like Hotten thrive on that. Just ask Bernie Madoff.

[spike3]

wonkit, I agree with you. Seems they got all excited by the prospect of big money and finally getting the show up, and they forgot to do what should have been done from the start. Investigate, know who your investors are, dig deep. Do not take the word of one man. And signing the titles of your house over to someone? Come on.

[wonkit]

spike3 - exactly. Shouldn't you at least meet with investors in person one time or talk to their lawyers or accountants? Basic stuff.

But I am sorry for the theater people other than the producers who put so much hope into a production for this season.

[CurtainPullDowner]

I'm also confused about the amount of $ discussed, sounds like small potatoes compared to the millions REBECKY needed.

I'm sure the producers will spin this so as to look not so dumb, but as said above, it really makes him look bad for not seeing through the con.
And the con man was under investigation for other deals,
no one noticed that?

[spike3]

having done a few shows at the Broadhurst, I became friends with a few of the people that work there, both front and back of house, and box office personnal as well.

This whole debacle not only is bad news for the actors /creatives but for stagehands, ushers, bartenders, porters, cleaning staff, house manager, and countless others not known to me. Sure, some may be able to find sub work, but for others this is not a very good time.

This man has created difficulties the lives of a lot of people

[finebydesign]

Jeeez I hope "Smash" goes this route.

[PalJoey]

^^^Brilliant idea.

[PatrickDennis92]

I can't believe they actually gave Hotton money before his investors paid into the show. That is crazy.

[wonkit]

Hotten probably said he had up front costs (like defense lawyer's fees).

[Idiot]

"This unfortunately makes the producers look unsophisticated, desperate and/or foolish."

This describes several producers that I know perfectly.

[Gothampc]

Rachel and Kurt will be right over to straighten this out. Rachel scored a Brooklyn loft with no income and Kurt scored a job at Vogue. They can handle anything.

[CarlosAlberto]

The behind the scenes chaos would make an interesting show itself.

[CurtainPullDowner]

I'm picturing Norbs as Hotten.

[GavestonPS]

Thank you for the update, Rob.

As I've suggested on another thread on this subject, I speculate there may be inherent problems with paying somebody a "finder's fee" to bring in investors. (There are quotes in previous NY TIMES saying this is a highly unorthodox system of raising funds for Broadway shows.)

The "finder" has every reason to conceal the investors he is bringing to the table, because once they are known to the producer, there is nothing except the threat of future litigation to keep the producer from cutting out the middle-man (the "finder") and making his own deal with the actual investor(s).

Because it is in the finder's interest to keep his investors secret, a producer may be inclined to forego the customary due diligence, reasoning that the finder's eventual commission is a guarantee that the FINDER has already done that due diligence.

Which is all well and good until a Hotton comes along.

As others have pointed out, what is truly perplexing here is the advancing of money to the finder (Hotton) BEFORE the financing was actually in place. Maybe Sprecher has a good explanation, but it strikes me as madness. As a producer I once worked for told me, "Always hold onto the money until the very last second. Once you fork it over, you've lost your power."

[OKBroadwayFan]

CNN Story:

http://www.cnn.com/2012/10/16/justice/broadway-scam/index.html?hpt=hp_t3&is_LR=1

[Kad]

I'm assuming Sprecher was acting out of desperation. But you would think a seasoned producer would be able to hold it together? It reflects poorly on him for being easily suckered- and I'm sure people will be less eager to write him checks... scrupulous people, I mean.

[zerose]

9 more Hotton scam victims came forward a couple weeks ago, including a close friend/neighbor who Hotton repeatedly threatened to run over with his car!

http://articles.nydailynews.com/2012-10-27/news/34768425_1_federal-investigation-fraudulent-activity-history-of-financial-fraud

[zerose]

Then this Monday, November 5, 2012, Mark C. Hotton was charged with stealing an additional $8.5 million from his brokerage customers at Oppenheimer&Co.

http://online.wsj.com/article/SB10001424052970204349404578101504101211498.html?mod=googlenews_wsj

http://www.reuters.com/article/2012/11/06/mark-hotton-finra-idUSL1E8M6AZ320121106

http://www.thestreet.com/story/11758782/1/finra-the-farce-is-the-newest-wall-street-tragicomedy.html?cm_ven=GOOGLEN