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Feds: Lake Forest ticket business used in scheme that duped athletes

A Lake Forest business is at the root of what federal officials say was a Ponzi-like scheme that duped professional athletes out of millions of dollars.

Headquartered on the second floor of the Forest Square mall at 840 S. Waukegan Road, The Ticket Reserve Inc.'s door was locked and the inside partially furnished Thursday.

In a complaint unsealed by the federal Securities and Exchange Commission this week, it's alleged Lake Forest resident John Kaptrosky was part of the scam that cheated San Francisco Giants pitcher Jake Peavy, Denver Broncos quarterback Mark Sanchez, retired Houston Astros pitcher Roy Oswalt and other investors out of at least $30 million from 2010 to early this year.

Kaptrosky was said to be away from his house on Lake Forest's east side when a Daily Herald reporter visited Thursday. No criminal charges have been filed against Kaptrosky, who is listed in SEC documents as The Ticket Reserve's chief financial officer, or the other two defendants in the case.

Monica Casas, a receptionist at a neighboring business with a clear view of The Ticket Reserve, said she saw uniformed police officers and "eight or 10 people in suits" enter the business while Kaptrosky was there earlier this month.

"They were there a long time," Casas said. "They were not walking out with anything. They were there for about, I'd like to say, about five hours."

Lake Forest Police Chief Karl Walldorf did not return messages seeking comment Thursday.

In a news release, the SEC thanked Lake Forest police for assistance in serving court orders on the defendants and other relevant parties.

California-based investment adviser Ash Narayan informed his clients in the Ponzi-like scheme he was pursuing a low-risk investment strategy for their money, but actually put roughly $33 million of it into the "cash-starved" Lake Forest online sports and entertainment ticket business, according to the SEC.

Narayan, The Ticket Reserve chief executive officer Richard Harmon of Texas and Kaptrosky are accused by the SEC of violating antifraud provisions of federal securities laws. Narayan directed clients' money to The Ticket Reserve, often without their knowledge or consent, to keep the business afloat, according to the SEC.

Attorneys for the three men have issued statements denying wrongdoing.

Court documents say The Ticket Reserve has lost money for the last four years, and Narayan failed to inform the athletes he received about $2 million in finder's fees for directing their funds to the company.

"Harmon and Kaptrosky also approved and executed Ponzi-like payments, falsified and backdated documents, and created sham promissory notes between The Ticket Reserve and Narayan in attempts to further conceal the scheme," according to the SEC.

Kaptrosky, listed as The Ticket Reserve's registered agent in Illinois Secretary of State records, was among the donors lauded in March by the Spirit of 67 Foundation, which directs money to help in education endeavors at Lake Forest Elementary District 67.

SEC documents show Kaptrosky has been chief financial officer of The Ticket Reserve, also known as Forward Market Media Inc., since at least 2005.

He previously worked as senior vice president of finance and vice president of finance/controller.

The case has been assigned to U.S. District Court for northern Texas. The SEC's Fort Worth office is handling litigation for the case.

• The Associated Press contributed to this report.

  Lake Forest resident John Kaptrosky has been accused by the Securities and Exchange Commission of being part of a financial scheme that duped professional athletes. He was said to be not at his Lake Forest house Thursday. He's not accused of criminal wrongdoing. Bob Susnjara/bsusnjara@dailyherald.com
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