Features
Label Owner’s Fraud Sentence
The owner of a Sioux Falls, S.D.-based record label who admitted to gambling away more than $1 million in investment money is going to prison.
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The Argus Leader reported Madhouse Entertainment founder Michael Zimmer was sentenced to four years and three months in federal prison, and to repay the investors’ money.
Zimmer was accused of conning people to invest in his company to promote rap concerts that never happened, and using the money instead for gambling trips to Las Vegas, Atlantic City and other places.
He was arrested in January and charged with nine counts of federal wire fraud. He pleaded guilty to one count in April under a plea deal with prosecutors.