Los Angeles, CA - A Rhode Island man was arrested Friday on federal charges alleging that he defrauded investors out of more than $4.2 million in connection with “Magic Mike Live,” a stage show at the Hard Rock Hotel and Casino that was based on two “Magic Mike films” that chronicle the life of a male stripper.
47-year0old John A. Santilli Jr., 47 is named in a 10-count indictment that charges him with one count of securities fraud, eight counts of wire fraud, and one count of aggravated identity theft.
Santilli made his initial court appearance Friday in United States District Court in Rhode Island, where a judge ordered his release on a $100,000 bond.
According to the indictment, Santilli managed and partly owned Aloris Entertainment, LLC, which acquired an interest in Mike’s Mobile Detailing, LLC, the company that operates the Magic Mike Live show in Las Vegas.
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 allegedly lied to investors, telling 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 a legal document that made it appear that Aloris Magic Mike LP was a member (i.e., 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 falsely told his victims that new investment opportunities had arisen, resulting in Santilli selling shares in his businesses that corresponded to nearly double the number of Class A Units of Mike’s Mobile Detailing that his company actually owned, the indictment alleges.
If convicted of all charges, Santilli would face a statutory maximum sentence of 182 years in prison.