CLEVELAND (WJW) — A Brecksville man, John E. Brown II, is facing federal charges for allegedly orchestrating a fraudulent ticket investment scheme that swindled five individuals in Ohio and Florida out of $3.3 million.
According to a federal complaint filed on June 7 in the Northern District of Ohio, Brown is charged with 17 counts of wire fraud and two counts of engaging in unlawful monetary transactions.
Prosecutors claim Brown created a fictitious investment scheme involving so-called “rolling code ticket packages,” which he marketed as bundles of tickets to major sporting events and theme parks. He allegedly told investors that the value of these packages fluctuated based on external factors, including a theme park’s stock price or a team’s performance, and that the packages could “split” to increase their value.
To give the illusion of legitimacy, Brown reportedly recruited others to pose as fellow investors or “code buyers” to lure victims into participating.
Instead of investing the funds, Brown allegedly used the money at casinos, loaned it to businesses, and even repaid part of it to one of the victims to maintain the scam’s credibility.
When investors started questioning the legitimacy of their returns, Brown is accused of providing false updates and doctored documents to mislead them. The fraudulent activity spanned from June 2020 to April 2024.
The complaint outlines 17 financial transactions — ranging from $5,000 to $609,000 — and includes accusations that Brown used $400,000 in cashier’s checks at a local casino, allegedly using funds taken from victims.
John E. Brown II is scheduled for arraignment on July 22 in a federal courtroom in Cleveland.
