CLEVELAND – An Ohio man has pleaded guilty to creating a phony investment opportunity which he used to convince unsuspecting victims to trust him with their money and then used their funds for his own personal benefit such as to gamble at casinos.

John E. Brown II, 45, of Brecksville, Ohio, pleaded guilty to 17 counts of Wire Fraud and two counts of Engaging in a Monetary Transaction in Criminal Proceeds. U.S. District Judge Dan A. Polster accepted Brown’s plea on Sept. 29, 2026.

According to court documents, Brown devised an investment scheme that he called “rolling code ticket packages” which were, according to Brown, bundled admission tickets to experiences such as sporting events or theme parks. From about May 2020 to May 2024, Brown promoted his investment opportunity by giving prospective investors information about the ticket packages. One way he convinced victims to invest was to point out that the value of the ticket packages would fluctuate in price based on a variety of factors including the stock price of theme parks or how well a professional sports team was performing that season. Another false selling point Brown highlighted was that the ticket packages frequently “split,” thereby doubling the number of tickets in the bundle and making it more valuable. Brown further misrepresented the investment by telling victims that he could generate profits by trading ticket packages when they increased in value.

Brown even went so far as to engage the assistance of other individuals to act as either successful investors or “code” buyers, in a coordinated effort to assure victims that it was safe to make significant investments. Additionally, he told some victims that the ticket packages were insured against losses, when in fact, they were not.

When victims were finally convinced to invest, Brown directed them to transfer their investment money to his business bank accounts. With the victims’ funds fully in his control, Brown spent the money for the benefit of himself including transferring approximately $1,375,000 to various casinos so he could gamble. When victims asked why they were not seeing returns on their investments, Brown provided them with fake documents suggesting he purchased the ticket codes on their behalf and gave them false assurances that their investments were safe.

Three of the victims were located in Berea, Mayfield Heights, and North Royalton, Ohio. Two victims resided in Cape Coral and Orlando, Florida. Collectively, victims lost more than $3 million by investing in what they were deceptively led to believe was a sound financial opportunity.

Brown faces a maximum penalty of 20 years in prison for each count of Wire Fraud charged in counts 1-17, and 10 years in prison for each count of Engaging in a Monetary Transaction in Criminal Proceeds charged in counts 18 and 19. Brown also faces fines of up to $4,750,000. Sentencing is scheduled for Jan. 7, 2027. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

This investigation was conducted by the FBI Cleveland Division.

Assistant United States Attorney Edward D. Brydle led the prosecution for the Northern District of Ohio.