Utsick Arraignment Delayed

The arraignment hearing was anything but routine, and was postponed when a dispute arose about Utisck’s defense attorneys. In the meantime, Judge Jonathan Goodman ruled that Utsick would be held until he resolves his choice of defense attorneys, according to the Miami Herald.

Prosecutor Jerrob Duffy accused Utsick attorney Michael Rosen of improperly receiving $307,000 from his client before a Miami federal judge ordered Utsick to pay a $4.1 million civil settlement with the Securities and Exchange Commission in 2009.

“Mr. Rosen received money from the fraud,” the Miami Herald quoted Duffy, who reportedly added the legal fees should have been paid back to investors. Duffy also said he will file a motion to disqualify Rosen from representing Utsick.

Rosen replied that “the government’s information is misinformation and bad information. If they want to put it writing, I will respond,” according to the Herald.

After the hearing, Rosen and attorney Philip Pitzer released a statement vigorously defending their client.

“Jack Utsick devoted his life to his company, Worldwide Entertainment, whose only goal was to present the best possible entertainment to the public. Jack created the second largest concert promotion business in the world, selling millions of tickets to thousands of shows.

“Jack is not the man the government portrays him to be,” the statement said. “Jack looks forward to clearing his name in court where the case will be decided.”

Utsick was reportedly designated a “fugitive” by U.S. authorities in 2010, a year after District Judge Paul Huck imposed a final settlement in the SEC case, which Utsick promptly appealed. However, Utsick remained in Brazil despite repeated court orders attempting to force him to return to Miami without a guarantee he wouldn’t face arrest.

In Monday’s hearing, Utsick’s attorneys challenged the “fugitive” designation because Utsick relocated to Brazil long before becoming aware he was being charged by the U.S. attorney’s office in Miami.

Utsick, who operated Worldwide Entertainment, was Pollstar’s fourth top-grossing global promoter in 2004.

An indictment filed in Miami accuses Utsick of using “false pretenses” to solicit millions of dollars from investors for his own benefit between 1996 and 2006. After reaching a settlement agreement with the SEC, his companies were put in receivership and liquidated, with the proceeds used to repay some 300 investors.

But in 2007, Utsick reportedly sold a Porsche and Mercedes-Benz and pocketed the money, which was a violation of a court order. Within days he departed for Brazil, according to the Herald.

Utsick’s legal troubles began when investigators determined that Utsick and partners Donna and Robert Yeager sold unregistered securities to finance concerts by Santana, the Pretenders, Aerosmith and others. Then, it was learned that Utsick was losing money on many of the shows, despite claiming to have earned millions during that time.

Receiver Michael Goldberg of Miami accused Utsick of orchestrating a massive Ponzi scheme, tapping into investor funds to support a lavish lifestyle including a South Beach, Fla., condominium, yacht, luxury cars, artwork and nearly $500,000 in credit card bills.

Utsick could not be reached for comment.