Michael Wright, the New York City strip club owner that was due to be former WFAN morning man Craig Carton’s co-defendant in an upcoming securities fraud trial, has admitted to his role in the alleged fraud. In exchange for admitting his guilt, Wright seemingly is in line for a lighter sentence. He has agreed not to challenge any sentence up to 27 months behind bars.
Wright says that he withdrew $550,000 from the Brigade Capital Management account at Carton’s instruction. That money, according to Wright, was used to pay Carton’s personal debts.
Josh Meli, who was also a defendant in this case, plead guilty to securities fraud in April. He is serving 78 months in prison.
Carton, Meli, and Wright raised nearly $2 million, which was supposedly going to be used to purchase tickets to events from promoters and venues. That money was instead, according to the Southern District of New York’s US Attorney’s office, used to pay off personal debts.
“From creating phony contracts to outright lies, Wright and his cohorts ensured that the money his backers thought they were investing actually went directly into his and his co-defendant’s pockets. Now, Wright has pled guilty to his audacious crimes and faces time in prison for his misdeeds,” US Attorney Geoffrey Berman said in a statement on the guilty plea.
This makes Carton the only person involved not to accept a plea deal. He stands accused of conspiracy to commit wire fraud and securities fraud, wire fraud, and securities fraud. Carton has plead not guilty to the charges. His trial begins October 29.
