LAS VEGAS (KLAS) — A Rhode Island man pleaded guilty Thursday to swindling victims who thought they were investing in the “Magic Mike Live” show in Las Vegas, according to the Justice Department.
John A. Santilli Jr., 48, pleaded guilty to one count of securities fraud and one count of wire fraud. The department said he admitted to defrauding investors out of more than $4.2 million.
Santilli managed and partly owned Aloris Entertainment, LLC which acquired an interest in the company that operates the “Magic Mike Live” stage show, according to his plea agreement.
Santilli solicited investments from victims in “Aloris Magic Mike LP” from June 2016 to February 2020, telling them that in return for their investment, they would receive “shares” that entitled them to a percentage of the profits from “Magic Mike Live,” the agreement said.
Santilli used a “significant portion” of the victims’ investments, including withdrawing over $1 million at casinos across the country, to use the money for gambling, the agreement said.
Prosecutors estimated that Santilli caused approximately $4,258,679 in losses.
Santilli will be sentenced on April 20, 2023 and will face a statutory maximum sentence of 40 years in prison.
Because the case was in federal court, a booking photo was not available.