A Texas man convinced investors to bet $1 million on his concert tickets business. He spent it on a cushy apartment instead

Now, Goodspeed faces 75 months in federal prison and must pay $1.2 million in restitution to the 17 victims.

At Goodspeed’s sentencing hearing, one of these investors said she had hoped the profits from these concerts would help a family member diagnosed with cancer. When she didn’t get her money, she was forced to use loans and credit cards to pay for her relative’s funeral.

Another victim sent Goodspeed $180,000 in one transaction to invest in tickets and suites for Tyler, the Creator. In court, Goodspeed admitted he took this money and spent it on rent at a plush apartment complex, as well as some high-end goodies and airfare.

U.S. Attorney Ryan Raybould commented on these types of schemes, saying, “Victims are often defrauded of life savings and suffer devastating economic and personal harm because of investment fraud schemes like this one.”

He added that, “Seeking lengthy prison time for defendants and restitution judgments on behalf of those victimized in these cases remain top priorities for my office.”

FBI Dallas Special Agent in Charge R. Joseph Rothrock (1) also offered a word of warning to investors, encouraging them to always carefully research opportunities to avoid a similar fate.

Eye-popping investment fraud stats

Federal data shows that fraudsters like Goodspeed are a growing problem in the U.S. Across all fraud categories, Americans lost a record $12.5 billion in 2024, a 25% increase from the year before, per the Federal Trade Commission (FTC) (2).

But investment scams result in the greatest loss that same year — with 48,000 investment-related scams costing victims $6.6 billion losses biggest category, according to the FBI’s Internet Crime Complaint Center (IC3) showed (2).

Although there’s no data tracking the prevalence of concert ticket schemes, the FTC reported over $750 million in losses (3) for fake business and job opportunities in 2024. For perspective, that’s an increase of $250 million versus 2023.

Currently, agencies like the FTC and FBI are most alarmed about the rise of cryptocurrency-related scams. These types of fraud schemes account for $5.8 billion in losses (2) from roughly 41,500 complaints, making them one of the largest and fastest-growing categories.

But no matter the type of fraud, these schemes often lure people in with similar tactics. If you know the warning flags, it’ll be easier to avoid a trap like Goodspeed’s ticket tactic.

Staying ahead of investment scams

The Financial Industry Regulatory Authority (FINRA) published a list (4) of clear warning signs of fraudulent investment schemes, some of which appeared in Goodspeed’s case.

If an investment opportunity promises guaranteed or suspiciously consistent returns, it’s probably bogus. No matter the investment, there’s always some degree of risk, so promising returns simply isn’t a reality.

FINRA also warns against working with anyone who sells unregistered products or who doesn’t have an official, verifiable financial license. It shouldn’t be difficult to find credible and third-party verified IDs on businesses through portals like FINRA’s BrokerCheck (5) or the SEC’s Investment Adviser database (6).