WFAN morning host Craig Carton has been arrested on federal charges related to white collar crime. Carton and co-defendant Michael Wright are accused of running a bogus discount ticket broker business which ripped off a few million dollars from investors.
According to reports, Carton’s involvement in a ponzi scheme resulted in investors being duped out of $5.6 million dollars. The funds were reportedly used to help cover Carton’s gambling debts.
If found guilty, Carton could face a maximum of 45 years in prison and millions of dollars of fines.
“The Carton and Wright show was just a sham, designed to fleece investors out of millions ultimately to be spend on payments to casinos and … other personal debt,” said U.S. Attorney Joon Kim.
A 26-page Securities and Exchange Commission filing accuses Carton of lying to investors. The sports radio host went as far as sending phony documents and e-mails to his unsuspecting business partners.
“Carton’s deceit did not stop with providing fake documents. When (one investor) made its $2 million investment, Carton misappropriated the money by lying,” according to the court papers.
Carton was arrested by FBI agents at his Manhattan home, causing him to miss his morning show with Boomer Esiason. The former NFL quarterback told the audience on Wednesday morning that he was taken aback by the news and had no idea of Carton’s issues.
In a statement, Carton’s employer CBS Radio, said it was “aware of the situation” and is cooperating with authorities.
WFAN is already facing a massive challenge having to find a successor for Mike Francesa in afternoons. Should Carton’s situation become one that requires future changes in mornings, it could put New York’s top rated sports radio station in a very difficult position.