LAS VEGAS (KSNV) — A Rhode Island man has pleaded guilty to charges stemming from a scheme that defrauded $4.2 million out of people looking to invest in a "Magic Mike" show in Las Vegas.
John Santilli Jr. pleaded on Thursday to a count of securities fraud and a count of wire fraud, the U.S. Attorney's Office for the Central District of California announced.
A plea agreement states that Santilli managed and partly owned Aloris Entertainment, LLC, which had a stake in Mike's Mobile Detailing, the company that operates the "Magic Mike Live" stage show.
Prosecutors said Santilli raised money by soliciting investments in Aloris Magic Mike LP, a different business that he falsely claimed owned the stake in Mike's Mobile Detailing.
He claimed investors would get shares in Aloris Magic Mike that would entitle them to profits from the stage show and used doctored legal documents to bolster his claim.
Santilli misappropriated clients' funds, according to prosecutors, including by withdrawing more than $1 million from casinos across the U.S. and using the money for gambling.
Sentencing is scheduled for April 20 next year. Santilli faces up to 40 years in federal prison.