Broadway Producers Allege Securities Fraud
A stockbroker involved in a Broadway play is the subject of a stockbroker fraud lawsuit for allegedly falsifying statements about the show's finances
According to The New York Times, the producers of Broadway musical “Rebecca” filed a $100 million fraud lawsuit in state Supreme Court against Mark C. Hotton, a former stockbroker from Long Island on whom they were relying to raise $4.5 million of the show’s $12-million budget.
Authorities arrested Hotton after allegedly falsifying statements about investors in the show in return for fees and expenses. According to the charges, Hotton milked $60,000 from the producers without bringing any money to the show.
Hotton faces 20 years for each of two counts of wire fraud, if convicted.
“Rebecca” is based on the gothic mystery novel by Daphne du Maurier, and the lawsuit itself seeks $100 million from the defendants for damages. Hotton filed for bankruptcy just last year.