Arizona Promoter Partner Sentenced

James Cundiff, the man who partnered with, and later turned in, Miko Dion Wady who operated a Ponzi scheme from 2004 to 2007 that conned investors out of $25 million, was sentenced March 7 for his part in the crime.

Cundiff, 61, pleaded guilty in November to a money laundering charge stemming from lining up investors for Wady and his company, Dezert Heat Entertainment. He was sentenced in an Arizona court to two years in a federal prison and ordered to pay $300,000 in restitution under a plea agreement.

Cundiff, former president of TransCapital, and two of his sons were accused of maintaining the illusion of success by taking investors backstage at concerts, giving them concert memorabilia and entertaining investors at after-hours parties.

The elder Cundiff reportedly became suspicious of Wady’s excuses for payment delays and contacted a former FBI agent to investigate, but he still moved $313,000 from the promotion company’s account to his personal account. Cardiff’s sons were cleared of wrongdoing.

The Cundiffs later claimed they had been duped by Wady along with the investors and filed their own lawsuit in 2007.