Kiss and Motley Crue Promoter Pleads Guilty to Fraud
Gabe Reed, operating under the name Gabe Reed Productions, is said to have persuaded investors to part with cash for events that he never booked or later canceled. The U.S. Department of Justice said Reed had promoted and organized concerts and WWE wrestling events for eight years.
“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,” Reed wrote in a plea agreement document. The paperwork said he had “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.”
He’s alleged to have used “sophisticated means” to commit fraud, which included an instance of securing $100,000 from an investor who thought he was backing a big-name tour called Titans of Rock, when, in fact, many of the artists listed had not agreed to take part. Reed is also said to have included creating false financial records and giving the impression he was close friends with A-list musicians.
The maximum sentence available to the U.S. District Court in Los Angeles is 20 years imprisonment followed by three years of supervised release, plus a fine of either $250,000 or twice the amount involved in the fraud, whichever is the greatest.
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