ATLANTA, GEORGIA – United States Attorney William M. McSwain announced six separate indictments charging 13 individuals with a multitude of crimes, including conspiracy to traffic in counterfeit goods, trafficking in counterfeit goods, conspiracy to commit wire fraud, wire fraud, and aiding and abetting.  U.S. Attorney McSwain announced the charges at the NFL’s annual anti-counterfeit merchandise press conference event held in connection with Super Bowl LIII.

The indictments filed in the Eastern District of Pennsylvania and announced today all relate to the production, distribution, and sale of counterfeit tickets to sporting and concert events.  This criminal behavior spanned several states and targeted multiple marquee sporting events, including Super Bowl LI, in Houston, Texas, and Super Bowl LII, in Minneapolis, Minnesota.  The details of each indictment, including the individuals charged and the sporting events that were targeted, are described more fully below.  The individual defendants face a range of penalties, largely depending on the amount of financial loss attributable to each.

Case No. 2:18-cr-00306 (RBS) (Smith) and Case No. 2:18-cr-00596 (RBS) (Ferguson) 

Eugene Smith, 45, of Lithonia, Georgia, and Eric Ferguson, 50, of Riverdale, Georgia, were both charged by indictment with conspiracy to commit wire fraud; wire fraud; conspiracy to traffic in counterfeit goods; and trafficking in counterfeit goods.  The indictments allege that Smith purchased real tickets to sporting events and concerts, provided them to his associate, Ferguson, who then printed counterfeit tickets for resale.  The indictments further allege that the counterfeit tickets were distributed to a network of individuals who would advertise and sell the counterfeit tickets to unsuspecting fans.  The indictments allege that from December 2016 to April 2018, the defendants conspired to traffic in counterfeit tickets for various sporting events, including Super Bowl LI; Super Bowl LII; a College Football Playoff game played in Tampa, Florida; and the Army-Navy Game played in Philadelphia.

Smith has pleaded guilty to all counts in the indictment and awaits sentencing.  Ferguson has pleaded not guilty and is awaiting trial, currently scheduled for February 11, 2019. 

Case No. 2:19-cr-00053 (RBS) (Williams et al.)

Sean Williams, 48, Damon Daniels, 48, Rahiem Watts, 30, Jermaine Jones, 41, all of New York, New York, and Rakee Russ, 40, of Philadelphia, are charged in a single indictment with conspiracy to commit wire fraud; wire fraud; conspiracy to traffic in counterfeit goods; and trafficking in counterfeit goods.  The indictment alleges a similar pattern of behavior: defendants Daniels and Watts created counterfeit tickets to various sporting events and worked with others, including their indicted co-defendants, to advertise and sell the tickets to unsuspecting victims.  It further alleges that that defendants conspired together to produce and sell counterfeit tickets to several sporting and concert events, including Super Bowl LI; an NCAA men’s college basketball game (Villanova University–University of Virginia) played in Philadelphia; an ACC men’s basketball tournament game played in New York City; and a FIFA World Cup qualifier soccer match between the United States and Costa Rica, played in Philadelphia.

Case No. 2:19-cr-0054 (RBS) (Warren and Higginbottom)

Khiale Warren, 52, and Rodney Higginbottom, 51, both of Philadelphia, are charged in a single indictment with trafficking in counterfeit tickets and wire fraud.  The indictment alleges that these defendants advertised through a third-party website and sold counterfeit tickets to several events, including the 1916-2016 Copa America Centenario soccer game played in Philadelphia; a Philadelphia Eagles–Minnesota Vikings NFL football game played in Philadelphia; an NCAA Football National Championship game played in Atlanta, Georgia; and a Phish concert in Philadelphia, in June 2018. 

Case No. 2:19-cr-0055 (RBS) (Tucker et al.)

Mustafa Tucker, 36, Malik Brown, 38, Kevin Sadat, 41, all of Philadelphia, are charged in a single indictment with conspiracy to commit wire fraud; wire fraud; conspiracy to traffic in counterfeit goods; and trafficking in counterfeit goods.  This indictment alleges that the defendants obtained copies of Ferguson-printed counterfeit tickets from Smith, advertised counterfeit tickets online, and sold tickets to unsuspecting victims. The indictment alleges the defendants conspired with Smith, Ferguson, and others to traffic in counterfeit tickets to Super Bowl LI and the NBA All-Star Game played in New Orleans, Louisiana.  It further alleges that Brown trafficked in counterfeit goods by selling tickets to the following events: a Phish concert  held in Philadelphia in June 2018, the 1916-2016 Copa America Centenario soccer game played in Philadelphia, and a Philadelphia Eagles-Atlanta Falcons game in Philadelphia, on September 8, 2018.

Case No. 2:19-cr-0056 (RBS) (Dunmore)

Edward Dunmore, 61, of Philadelphia, was charged with two counts of trafficking in counterfeit goods.  The indictment alleges that on two occasions, Dunmore sold tickets to a Phish concert in Philadelphia, in June 2018.

“Criminal counterfeiting and piracy are serious crimes,” said U.S. Attorney McSwain.  “When fans spend their hard-earned money on tickets and merchandise, they deserve the real deal.  These defendants repeatedly targeted events based on profitability and perpetrated a fraud on unsuspecting fans.  These indictments send a clear message that phony ticket sales are a federal case – one that we will pursue to the fullest extent of the law.”

“This case grew out of the public safety partnership between FBI Philadelphia's special events program, the NFL, and the Philadelphia Eagles,” said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division.  “But as the scope of the investigation expanded nationwide, it truly became a collaboration, and for that I'd like to thank all of our law enforcement partners.  There were no less than 30 local, state, and federal law enforcement agencies and 23 FBI field offices that directly contributed on this case, allowing us to achieve our ultimate goal of protecting the ticket-buying public.”

The case was investigated by the Federal Bureau of Investigation, the Philadelphia Police Department, New York Police Department, with assistance from the United States Attorney’s Office for the Northern District of Georgia, the Pennsylvania Attorney General’s Office, the New York District Attorney’s Office, and multiple local law enforcement authorities, including the Duluth, Georgia Police Department.  The case is being prosecuted by Assistant United States Attorneys Joan Burnes and Anita Eve.

An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.

ATLANTA, GEORGIA– On January 31, 2019, United States Attorney William M. McSwain spoke at the National Football League’s anti-counterfeiting and piracy press conference held in connection with Super Bowl LIII.  U.S. Attorney McSwain announced six separate indictments charging 13 individuals with a multitude of crimes, including conspiracy to traffic in counterfeit goods, trafficking in counterfeit goods, conspiracy to commit wire fraud, wire fraud, and aiding and abetting. 

Remarks as Prepared for Delivery

Each year, the Super Bowl unites Americans in a unique way.  It is a celebration of the game, its players, and of the competitive spirit that helps to define our country. 

Unfortunately, with all the good that comes along with events like the Super Bowl, there’s an opportunity for criminals to prey on unwitting fans.  These events attract people looking to make a quick buck through counterfeiting.

Criminal counterfeiting and piracy are serious crimes.  When fans spend their hard-earned money on NFL tickets and merchandise, they deserve the real deal.  And today, I am here to announce criminal counterfeiting charges that my Office has brought to help ensure that NFL fans – and all of us – get what we pay for when we attend a big event. 

The United States Attorney’s Office for the Eastern District of Pennsylvania has filed six criminal indictments against multiple defendants, alleging their involvement in a scheme to traffic in counterfeit ticket sales.  This widespread conspiracy spanned multiple states, involved 13 defendants, and covered numerous sporting and concert events. 

We know from our investigation that the defendants targeted events and their victims based on profitability – the bigger the event, the bigger the payoff.  The scheme involved several steps and multiple players:  after determining which events would draw the most profit, the schemers would use real tickets, or photographs of real tickets, to print counterfeit ones for the event, and then the sellers would travel to the host city to sell their phony tickets to unwitting fans.  This scheme involved sophisticated printing that mimicked the authentic tickets’ markings and hologram.  

Many of the individuals that we have charged allegedly defrauded NFL football fans by printing, distributing, and selling counterfeit tickets to Super Bowl LI (51) in Houston (between the Patriots and the Falcons) and Super Bowl LII (52) in Minneapolis (between the Eagles and the Patriots). 

In addition to these games, the criminal indictments allege that the schemers targeted other high-profile sporting events, including the Army-Navy football game played in Philadelphia in December 2017; two College Football National Championship games (one played in Tampa, in January 2017, and another played here in Atlanta in January 2018); and various big-ticket basketball games. They also trafficked in counterfeit concert tickets in various venues.  

The initial arrests in this case were of two individuals named Eugene Smith and Eric Ferguson, both from the Atlanta metropolitan area.  Ferguson is alleged to have printed the counterfeit tickets for Smith, who then supplied the tickets to several additional individuals who solicited buyers and sold them.  Both Smith and Ferguson have been charged with producing and distributing counterfeit Super Bowl tickets in 2017 and 2018.  Ferguson has pleaded not guilty and awaits trial.  Smith has pleaded guilty to four counts and awaits sentencing in custody in Philadelphia.  

The second wave of indictments targeted additional printers, distributors, and street-level counterfeit ticket sellers.  Multiple arrests occurred earlier this week through a coordinated federal, state, and local effort across multiple states.  As fate would have it, one of these individuals, Damon Daniels, was apprehended en route to Atlanta, thanks to the great police work by the Duluth, Georgia police department.  The arresting officer reported that Mr. Daniels’s car was filled with printing equipment and cardstock, presumably to resume counterfeit ticket sales at this year’s Super Bowl.

The individuals charged and arrested this week are the following: Rakee Russ, Mustafa Tucker, Malik Brown, Kevin Sadat, Edward Dunmore, Khiale Warren, and Rodney Higginbottom, all of Philadelphia; and Sean Williams, Damon Daniels, Rahiem Watts, and Jermaine Jones, all of New York.  These indictments, which are now publicly available and filed with the court, outline the charges and identify which of these individuals are charged with conduct related to counterfeit Super Bowl tickets.  We have also prepared a press release that provides additional details about the charges.

If convicted, the defendants face a range of penalties, determined primarily by the amount of the financial loss attributable to each.  And by bringing these charges federally, we have assured that many of these individuals will serve serious prison time if convicted. 

I want to extend my thanks to FBI Philadelphia for spearheading the investigation and to Special Agent in Charge Michael Harpster and Assistant Special Agent in Charge Joe Bushner for their leadership, and to our local partners who served as boots on the ground – always willing to step in and stop the counterfeit sales, where possible. They acted swiftly when we learned about events unfolding in real time, often as the individuals were meeting their victims.  Thank you to the Philadelphia Police Department and Commissioner Richard Ross; to the Pennsylvania Attorney General’s Office and Attorney General Josh Shapiro and his First Deputy Chief, Bureau of Investigations, John Kitzinger, who is with us today; to the New York Police Department; to the Manhattan District Attorney’s Office; to the FBI Field Office in Atlanta; and finally, to BJay Pak, the U.S. Attorney for the Northern District of Georgia and his Office.

This case serves as an important reminder to all of us who enjoy sporting and concert events with friends and family. 

Most importantly, when you are buying tickets, consider the source. The safest route is always to purchase from an approved source.  Many fans believe that if they are not purchasing tickets from scalpers on the street, they are safe, and that it’s OK to buy tickets on a third-party website because the sellers can be tracked and traced.  That is not always the case.  The majority of counterfeit sales happen not on the streets, but through the Internet.  

The FBI and the Department of Justice take counterfeiting and piracy very seriously.  Economic crimes like these will continue to be a focus of my Office and of the Department. 

At this time, I would like to introduce my colleague from the FBI Philadelphia Field Office, Assistant Special Agent in Charge Joe Bushner.