A former rock concert promoter is facing federal fraud charges in Tucson on suspicion he cheated investors who bought into his business.
Oro Valley resident Frederick J. Stahmer, 54, was indicted April 21 by a grand jury on suspicion of four counts of wire fraud, accused of bilking two victims who lost nearly $200,000 between them, according to the FBI and a federal indictment.
Stahmer operated his company, Frederick Entertainment, out of Oro Valley. An online business profile describes him as executive producer of “Farm Rock,” a series of concerts at small venues around the country that featured 1980s heavy metal bands such Quiet Riot and Queensryche. He produced his first show, a small concert in Las Vegas in 2011, and eventually began bringing in investors to assist with financing concerts, the indictment states.
By about 2013, Stahmer had achieved the ability to put on bigger concerts and attract investors who were willing to put up $30,000 to $40,000, the indictment states. But by then, the indictment says Stahmer’s business was losing money.
Some investors gave Stahmer up to $80,000, while others paid less under various financial scenarios, according to the indictment.
For example, in one scenario, investors could agree to cover a percentage of a concert’s costs in return for an equal percentage of the profits, the indictment states.
From about 2013 to 2016 — a timeframe in which Stahmer’s company was losing more money than it was making — he “devised and intended to devise a scheme to defraud investors,” according to the indictment.
To keep money coming in, Stahmer pretended his firm was financially sound and made up fake profit and loss statements to show to potential investors, the indictment said.
“Stahmer caused losses to victims totaling more than $1 million,” the indictment states.
It is unclear if Stahmer has a lawyer. The federal indictment does not list an attorney of record for him.
Contact reporter Carol Ann Alaimo at 573-4138 or firstname.lastname@example.org. On Twitter: @AZStarConsumer