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In SDNY Craig Carton Says 15% of FanDuel Pay Is Awaiting Distribution to Victims

By Matthew Russell Lee

SDNY COURTHOUSE, Feb 4 – When Craig Carton was sentenced on April 5, 2019 in the U.S. District Court for the Southern District of New York, Chief Judge Colleen McMahon told him, "Long time listener" - and first time sentencer.

  For wire fraud and Judge McMahon called plain stealing, Carton was sentenced to 42 months in jail, millions of dollars in restitution, and 150 hours of community service when he came up.

  He and his lawyer blamed gambling addition and behind that, a sexual assault at a summer camp when he was eleven. Judge McMahon said that neither excused his theft. She noted at the end that sports talk radio is now largely sponsored by legal gambling companies and that Carton would most probably be reading their ads, and the useless 1-800 Gambling help lines at the end, if he were still on the air. Who knows, she said, maybe I'll turn on WFAN and hear you again one day. She cited a column by Phil Mushnick of the New York Post.

   During the proceeding a man directly behind Inner City Press introjected, Give him a week. Afterward in the hall he said that he too was a gambling addict, and blamed the ticket cabals. Carton left the courthouse in an black SUV with TLC plates, without speaking.

  Back on March 7, 2019 Michael Wright broke down crying before he was sentenced to 21 months by Judge Colleen McMahon. He said he was taken him by Carton and joined his scheme to take money from a hedge fund Brigade Capital Management for an illusory ticket service, Tier One Tickets.

   But, Judge McMahon pointed out, Carton didn't make Wright use the money to pay off his mortgage and credit cards. Judge McMahon said this was the first case in which she got letter supporting the defendant from both law enforcement officials and exotic dancers, working in Wright's Sapphire NY, Prime 333 Steakhouse and SINS of Sapphire.

  Carton went to trial, and it is from Wright's emails introduced in this case that Judge McMahon said she knows the facts better than the probation officers. Wright's lawyer argued that he hadn't been allowed to put those emails into context, and left the door open to file an appeal despite the 21 month sentencing between below the maximum agreed to.

The two sides were $1 million apart on restitution, with that to be argued and decided within 90 days. Wright to to turn himself in, most probably to Otisville, on June 10 before 2 pm. Be early, Judge McMahon told him, or Mr. O'Neill will get a call at 2:01 and I'll sign a warrant for your arrest at 2:02. She wished him well.

  Jump cut to January 31, 2022. Judge McMahon convened a proceeding to ask "why we're making so little progress on getting restitution paid in this case."

   She added, "Mr. Carton has no more loyal listener than me. I know he happens to be doing rather well professionally right now, and so I would like to know what is going on."

  Carton's lawyer replied that "Mr. Carton has made restitution payments on an ongoing basis." Officer Ogunmefun added, "Whenever he receives payment via FanDuel, 15 percent is wired over to the Clerk's Office in the SDNY."

  Judge McMahon went on to day, "Now I understand that the Clerk of the Court is sitting on some money here, which I think we need to get disbursed." Six figures. 

The case is US v. Carton, et al., 17-cr-680 (McMahon)

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