Rhode Island man accused of fraud tied to ‘Magic Mike Live’ show
A Rhode Island man is accused of defrauding more than $4.2 million from investors in connection with the “Magic Mike Live” show in Las Vegas.
John Santilli Jr., 47, has been charged with one count of securities fraud, eight counts of wire fraud and one count of aggravated identity theft, the Department of Justice announced Tuesday.
According to the federal indictment, Santilli managed and partly owned Aloris Entertainment LLC, which acquired an interest – through securities called “Class A Units” – in Mike’s Mobile Detailing LLC, the company that operates the “Magic Mike Live” show in Las Vegas.
The stage show is based on the two “Magic Mike” films that detailed the life of a male stripper and performed at the Hard Rock Hotel on the Las Vegas Strip before the casino closed last year. The show is now staged at Sahara Las Vegas.
According to the indictment, Santilli raised funds from victims by soliciting investments in “Aloris Magic Mike LP,” a different business that he falsely told investors owned the Class A Units. Santilli told them that in return for their investment, they would receive “shares” in Aloris Magic Mike LP that corresponded to a particular number of Class A Units and entitled them to a percentage of the profits from “Magic Mike Live.”
To bolster his false claims, the indictment states, Santilli used a doctored legal document that made it appear that Aloris Magic Mike LP was a shareholder of Mike’s Mobile Detailing.
The indictment also states that Santilli misappropriated a significant portion of his victims’ investments, including withdrawing more than $1 million at casinos across the United States. To raise more funds, Santilli sold nearly double the number of Class A Units of Mike’s Mobile Detailing that his company actually owned, the indictment states.
“Nobody involved in the ‘Magic Mike’ show had really anything to do with the situation that has transpired,” “Magic Mike Live” Executive Producer Vince Marini said Thursday afternoon. “We are saddened by it, certainly, and hope it works out the best for all involved. It’s an issue that we’ve obviously been dealing with, but at the same time it has not had any direct impact on either the product on the stage, or our ability to relaunch the show.”
If convicted of all charges, Santilli would face a statutory maximum sentence of 182 years in prison
Santilli made his initial court appearance Tuesday in U.S. District Court in Rhode Island, where a judge ordered his release on a $100,000 bond.
Contact Briana Erickson at berickson@reviewjournal.com or 702-387-5244. Follow @ByBrianaE on Twitter.
— Columnist John Katsilometes contributed to this report.