Wow a bit bigger than initially reported...also shocked that he only makes $250K for a show that's as big as B&C...
http://www.nydailynews.com/sports/mo...icle-1.3473530
WFAN morning show co-host Craig Carton was arrested early Wednesday for duping investors out of $5.6 million to cover his staggering gambling debts, authorities said.
The motor-mouthed Carton turned to crime after running up millions of dollars in losses with two casinos, plus a debt of $825,000 to an unidentified individual, court papers charged.
Carton and co-defendant Michael Wright were both charged with securities fraud, wire fraud and conspiracy. The two could face a maximum of 45 years in prison and fines running into millions of dollars.
“Behind all the talk, the Carton and Wright show was just a sham, designed to fleece investors out of millions ultimately to be spend on payments to casinos and ... other personal debt,” said U.S. Attorney Joon Kim.
A 26-page Securities and Exchange Commission filing accused Carton of lying to his investors, going as far as to send phony documents and e-mails to his unsuspecting business partners.
“Carton’s deceit did not stop with providing fake documents ... When (one investor) made its $2 million investment, Carton misappropriated the money by lying,” according to the court papers.
Carton, 48, was arrested by FBI agents at his Manhattan home — causing the highly-paid sports talk gabber to miss his morning show opposite former New York Jets star Boomer Esiason.
“I am aware now why Craig is not here this morning,” Esiason told listeners Wednesday. “Unfortunately, he was arrested this morning ... I’m taken aback and surprised by it, just like everybody else is.
“I thought he called in sick this morning, but unfortunately my partner was arrested.”
CBS Radio, the parent company of WFAN, released a statement saying they were aware of the arrest and cooperating with authorities.
Carton earns a reported $250,000 a year as the sports radio station’s morning drive-time co-host.
Carton allegedly lured investors into a fraudulent ticket resale business, promising to deliver face-value tickets to concerts by stars like Katy Perry, Justin Bieber, Metallica and Barbra Streisand.
“In reality, no such agreements with the concert promoter or venue existed, and the signatures for the concert promoter or venue,” the SEC charged.
At the time, Carton had “accrued millions of dollars worth of gambling-related debts to casinos and other third parties,” court papers indicated.
Some of the money scammed from investors was used to repay other investors in what prosecutors described as “a Ponzi-like scheme.”
Carton was a close friend of New Jersey Gov. Chris Christie, often inviting the politician to appear on his WFAN program.
He and Esiason also hosted an annual benefit softball game to benefit the Port Authority PBA Widows’ and Children’s Fund.
A second lawsuit filed against Carton this past May accused him of skipping out on $114,116.13 in rent on a Soho business office leases under the name Advance — one of his bogus ticket-selling companies.
The SEC filing also accused Joseph Meli, 43, of Manhattan, of conspiring with Carton in the scam. Meli was not mentioned in the criminal complaint.
A former Tribeca neighbor of Carton told the News there was no indications of any problems with the radio show host.
“He was a very nice guy around me,” said the neighbor. “He was very quiet.”
The acid-tongued Carton joined Esiason on WFAN on Sept. 4, 2007 — nearly 10 years to the day of his arrest.
Carton’s rise to New York radio included stops in Buffalo, Cleveland, Philadelphia and New Jersey. The New Rochelle native was nominated in 2006 as national talk show host of the year.
Carton is married and the father of four children.
