A former Austin concert promoter who failed to uphold promises about staging shows featuring big-name acts like Justin Bieber and the Black Eyed Peas has been sentenced to 10 years behind bars.
Aside from being slapped with the prison term May 4, David Elliott Rosen was ordered to pay restitution of $1.8 million in the concert promotion case, according to the Texas State Securities Board, which regulates investments. Rosen admitted in Travis County District Court to defrauding a number of investors in his concert ventures.
Rosen was indicted in 2015 on charges of securities fraud, theft, and money laundering that arose from his sale of investment contracts and promissory notes in a “concert investment program.” Rosen operated businesses under the names Rozone Productions LLC and Illuminated Entertainment Group LLC.
Rosen told investors he would use their money to secure certain musicians for concerts. But none of those concerts ever materialized.
Investors’ money was supposed to go into a third-party escrow account and be refunded if the concerts didn’t take place, the securities board says. However, Rosen wound up pocketing much of the investors’ money to cover personal expenses. Individuals and companies made investments of between $7,000 and $200,000 each in 2009 and 2010, according to the securities board. Some made several investments.
In an unrelated case involving investment fraud, Rosen pleaded guilty to theft by deception. He was sentenced to 10 years in prison and ordered to pay restitution of $809,000. Rosen will serve both prison sentences at the same time.
Rozone Productions, Illuminated Entertainment, and Rosen all filed for bankruptcy liquidation in 2010.