Utsick Denied Bail In Miami

U.S. Magistrate Judge Edwin Torres said during the twice-delayed hearing that there was ample evidence the 72-year-old Utsick might attempt to flee prosecution.

He has been jailed in Miami since his extradition from Brazil in December. Utsick was “white-bearded and shackled at the waist” during the hearing, according to the Sun-Sentinel.

Assistant U.S. Attorney Jerrob Duffy told the court that during his stay in Brazil, Utsick attempted to become a Brazilian citizen in order to evade extradition to the U.S. Utsick attorney Philip Pitzer said his client suffers from bipolar disorder and diabetes.

Utsick and co-defendants Robert and Donna Yeager were accused in 2006 of defrauding some 3,000 investors of more than $300 million in what amounted to a Ponzi scheme.

A settlement agreement was announced and Miami attorney Michael Goldberg appointed as receiver while the businesses were liquidated in order to repay investors. Ultimately, only about 25 percent of the money has been recovered through sales of assets, property and other means.

A life insurance policy on Utsick worth at least $30 million could eventually provide more money to investors, Goldberg said. The Yeagers completed their obligations under the settlement and were released several years ago. However, Utsick continued to battle the receivership and intended to revive his concert business.

Utsick has maintained he legitimately traveled for business purposes in 2007 to Brazil, in hopes of building an amphitheatre in Sao Paulo. Prosecutors claim otherwise, saying Utsick pocketed proceeds from the sale of two luxury cars in violation of a court order days before taking leg bail to Brazil.

In any case, Utsick had declined numerous offers from the U.S. government to return to Miami to be deposed in the ongoing Securities and Exchange Commission investigation, and spent 18 months in custody while fighting extradition from Brazil, according to the Sun-Sentinel. He and co-defendants Donna and Robert Yeager (who have since been released from the case) 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.

At least one of his former investors attended the hearing in support of Utsick. “There was no part of this that was a Ponzi scheme,” Wilson Stevenson said. “If they had just left Jack alone, he would have turned it around.” Utsick’s daughter, Tanya, attended the bail hearing and arraignment and said her father was a victim of government overreach and did not operate a fraudulent business.

She said Utsick is an honorable person who would have made good on his intentions. She also denied he lived a “rock star lifestyle” as portrayed by prosecutors. She maintains her father is a modest person trying to keep his promotion business afloat. “He did not live a lavish lifestyle,” she said.