Marc Hubbard, 44, of North Carolina is in custody there, on charges of wire fraud. Federal officials say he convinced others to work with him on a fake Stevie Wonder concert, including Sean Barriero, 44, of Miami, who today pled guilty in federal court to transporting the fraudulent funds.
Details revealed in the indictment add even more wrinkles to an already unbelievable scam — international dealmaking, secret recordings, even a splurge on a Mercedes-Benz.
The charges stem from what appears to be a combination of an alleged premeditated scam by Hubbard, and what started as a seemingly genuine belief by Barriero that he was helping to get Wonder to Hawaii. But Barriero’s help as an intermediary would lead to a financial crime of its own.
"From day one we regarded the university as an institutional crime victim,” said Vida Bottom, special agent in charge of the FBI’s Honolulu office.
It started when local concert promoter Bob Peyton reached out to Spain-based talent agent Helen Williams to help book Wonder. Williams called
Barriero and his Miami-based Epic Talent for help, and Barriero turned to Hubbard.
"Mr. Hubbard represented that he had connections with the management and inner circle of Stevie Wonder’s management and that Mr. Wonder was available for a concert here in Honolulu,” said U.S. Attorney Florence Nakakuni.
Barriero and Williams negotiated a contract with Peyton, who sent a $50,000 borrowed “binder.” Then UH wired $200,000 dollars into what Barriero misrepresented as an escrow account.
"At that time,” explained Barriero’s attorney, public defender Sean Coutain, “Mr. Barriero and Ms. Williams deducted their consultant fees from the$ 200,000 and forwarded the remaining funds to Marc Hhubbard as he was supposed to forward that on to Stevie Wonder."
Trouble was, the FBI says Barriero told a UH official in a wiretapped phone call that all $200,000 had gone to Stevie Wonder’s management.
Barriero pled guilty to transporting misappropriated funds.
“The FBI appreciates Mr. Barriero’s acceptance of responsibility in court today,” said FBI Special Agent Tom Simon, “and we also look forward to his continued cooperation in this case."
The FBI tracked $120,000 spent by Hubbard on business debts and personal expenses, $11,250 to the European promoter, and $68,750 spent by Barriero, on including $27,000 toward a black Mercedes SUV. The car has been seized in Florida but is only worth about as much as the lender is owed, and that lien-holder has dibsbefore UH would see a penny after federal auction.
"He would like the public to know that he expresses his condolences over this situation," Barrier’s attorney said. “Because he is going to be a witness against Mr. Hubbard, he cannot answer any questions or make any statements to the media of any kind, as this could potentially jeopardize his testimony in the case."
But of the $50,000 deposit send by Peyton earlier, the lady in Europe got nearly $9,000, Barriero got nearly $14,000, and Hubbard took just over half.
Hubbard is a club and concert promoter, who boasts of knowing Kanye West and other celebrities. He reportedly spent thousands to have Kim Kardashian come to a party he organized that one paparazzi site declared a flop.
A simple Google search of his name before any Wonder “deal” was made would have shown red flags. Hubbard’s past includes fraud and forgery charges, and cease-and-desist orders over investment scams, including one involving a fraudulent Alicia Keyes concert tour.
The FBI says their investigation clears UH officials of any criminal wrongdoing, but the scam has had wide implications for the athletic department.
Here’s a look at the timeline for the concert scam:
* The concert itself was announced on July 6;
* 3 days later, UH was contacted by Wonder’s representatives who said they were not working with legitimate promoters for the entertainer;
* The next day, it was officially cancelled;
* The day after that, athletics director Jim Donovan and arena manager Rich Sheriff were placed on leave;
* A month later, Donovan was reassigned to a position in the chancellor’s office, and sheriff returned to work;
* Rockne Freitas is serving as interim AD, with a search committee tasked with finding a permanent leader;
See the original article at: KHON2 Local News
