TL;DR
- Elite Events and Tickets, LLC, operated by Kevin McKerley and Aaron Fera, systematically used bots, fake accounts, and overseas agents to steal over 86,000 tickets from major artists like Tate McRae and Metallica.
- The company violated the Better Online Ticket Sales (BOTS) Act by circumventing security measures on Ticketmaster and AXS to buy tickets in excess of posted limits.
- The scalpers resold these stolen tickets on secondary markets for markups of 100% to 500%, depriving ordinary fans of fair access.
- The FTC secured a Stipulated Order imposing a $10.7 million civil penalty, though only $300,000 is currently required due to the defendants’ claimed inability to pay the rest.
- Or in other words, Elite Events is so ass at making money even whilst cheating that they were able to get away with the tiniest slip on the wrist. Absolutely disgusting imo
Read on to learn how the defendants turned ticket scalping into a global industrial operation.
The Non-Financial Ledger
This case is a story of dignity stripped from fans who waited in digital queues, only to find the doors locked by algorithms designed to favor the highest bidder. Families planning milestone celebrations for birthdays or anniversaries found themselves priced out of their own memories.
The emotional toll extends to the disruption of community events. Concerts and sporting matches become exclusive enclaves for the wealthy when the primary market is hijacked by automated systems. The frustration of seeing a seat empty or a ticket sold for ten times its face value creates a sense of powerlessness that erodes trust in the cultural fabric of live entertainment.
Defendants treated these events not as shared human experiences, but as commodities to be harvested. They weaponized technology to turn a moment of joy into a transaction of exclusion, leaving thousands of consumers feeling cheated and ignored by the very systems meant to serve them.
Legal Receipts
“Defendants have routinely circumvented the maximum ticket purchasing limit on over 2,400 different events (of over 250 separate performers) and resold tickets to these events on the secondary marketplace at a significant profit.”
- This admission confirms the scale of the operation, targeting hundreds of performers and thousands of events specifically to exploit high-demand moments.
“To attract prospective ticket purchasing agents to work for Elite Events, Defendants post online job advertisements… claiming that an Elite Events ticket ‘puller’ can earn between $400 to $600 in cash per week.”
- The recruitment of overseas “pullers” reveals a deliberate strategy to outsource the illegal act of botting to vulnerable workers abroad, creating a global supply chain for theft.
“Using these services, Defendants and their agents can mask their actual IP addresses from ticket issuers… By hiding their true IP addresses from ticket issuers, Defendants have circumvented security measures…”
- This quote details the technical mechanism of the crime: using proxy services to impersonate thousands of different users, effectively rendering security measures useless.
“Judgment in the amount of Ten Million, Seven Hundred Fifty-Eight Thousand Dollars ($10,758,000) is entered… Defendants are ordered to pay… Three Hundred Thousand Dollars ($300,000)… Upon such payment, the remainder of the judgment is suspended.”
- The penalty structure shows a massive theoretical fine that is practically uncollectible, highlighting the difficulty of holding corporate bad actors financially accountable when they claim insolvency.
Public Deception
While presenting themselves as a legitimate ticket broker, Elite Events operated a sophisticated machine designed to deceive both ticket issuers and the public.
- Claim: Defendants presented themselves as standard ticket buyers following posted rules.
- Reality: They used hundreds of fictitious accounts, virtual credit cards, and IP masking software to bypass purchase limits explicitly designed to prevent their exact behavior.
- Claim: Their “pullers” were independent contractors working within legal bounds.
- Reality: Defendants provided specific training on how to evade detection, supplied the fake accounts, and directed the timing of purchases to overwhelm security systems.
Profit-Maximization at All Costs
Elite Events built a business model predicated on the calculated decision to break the law because the potential profits outweighed the risk of penalties.
- Between July 2022 and August 2025, Defendants exceeded ticket limits on over 2,400 events, amassing over 86,000 tickets.
- They generated over $3.5 million in profits specifically from reselling tickets acquired in violation of the BOTS Act.
- Defendants recruited overseas agents in countries like Egypt and the Philippines, paying them commissions to execute the illegal purchases, effectively outsourcing the legal risk.
How Capitalism Exploits Delay: Time as a Corporate Weapon
The timeline of this case reveals a pattern of prolonged misconduct before accountability was forced.
- The scheme began as early as 2021, with Defendants actively circumventing security measures.
- By July 2022, the operation had scaled to include hundreds of accounts and overseas agents.
- The FTC filed the complaint in July 2026, meaning the illegal activity continued for nearly five years before a permanent injunction was entered.
Supply Chain Complicity
Elite Events did not operate in a vacuum. They constructed a global supply chain of labor and technology to facilitate their theft.
- Technology Tier: Defendants purchased specialized software like “Primo Browser” and “SessionBox” specifically designed to run multiple sessions and bypass geo-restrictions.
- Labor Tier: They recruited “pullers” in the Philippines and Egypt, providing them with training manuals on how to use proxies and fake accounts.
- Financial Tier: Virtual credit card accounts were generated to create thousands of unique payment methods, masking the origin of funds.
Societal Impact Mapping
Economic Inequality
The defendants’ actions created a two-tiered system where access to culture is determined by the ability to pay inflated prices.
- Tickets for events like Tate McRae and Benson Boone were resold for 100% to 500% above face value.
- Fans were forced to pay these premiums on secondary markets like StubHub and Vivid Seats, transferring wealth from working-class families to corporate scalpers.
Public Trust Erosion
The systematic bypassing of security measures undermined the integrity of the primary ticketing ecosystem.
- Security measures like CAPTCHAs and IP limits became meaningless when faced with organized bot farms.
- Consumers lost faith in the fairness of the ticket buying process, believing that only those with insider access or bots could secure seats.
The Settlement Isn’t Justice
The financial penalty imposed on Elite Events fails to serve as a meaningful deterrent for future violations.
- The total judgment was set at $10,758,000, yet the defendants paid only $300,000.
- The remaining $10.4 million was suspended based on the defendants’ sworn financial statements claiming inability to pay.
- This outcome allows the perpetrators to retain the vast majority of their illicit profits while facing a nominal fine.
This Is the System Working as Intended
The outcome of this case illustrates how the legal framework protects corporate profitability over consumer rights.
- The suspension of the penalty based on “financial hardship” effectively rewards defendants for hiding assets or underreporting wealth.
- The BOTS Act exists, yet enforcement mechanisms allow violators to continue operating until caught, and then escape full liability.
- The reliance on voluntary compliance reporting and financial disclosures places the burden of honesty on the very entities proven to be dishonest.
What a Legitimate Fix Looks Like
Genuine accountability requires structural reforms that close the loopholes Elite Events exploited.
Regulatory Track
- Mandate real-time verification of IP addresses and device fingerprints by ticket issuers, with strict penalties for platforms that fail to detect bot traffic.
- Require third-party audits of ticketing platforms to ensure security measures are robust against known circumvention techniques.
Legislative Track
- Amend the BOTS Act to impose mandatory minimum penalties that cannot be suspended based on self-reported financial status.
- Criminalize the sale of botting software and proxy services specifically marketed for ticket scalping.
Corporate Governance Track
- Prohibit individuals convicted of BOTS Act violations from serving as officers or managers of any ticketing-related entity.
- Implement strict liability for parent companies that profit from the illegal activities of their subsidiaries or contracted agents.
What Now?
Focus your attention on the specific entities and regulators responsible for this failure.
- Watchlist: Federal Trade Commission (FTC) β Monitor for future enforcement actions against similar scalping rings.
- Watchlist: Ticketmaster & AXS β Demand transparency on how many tickets are being bought by bots despite their security claims.
- Action: Support legislation that strengthens the BOTS Act and removes the ability for corporations to suspend fines based on “hardship.”
- Organizing: Join fan advocacy groups pushing for “fan-first” ticketing policies that prioritize verified human buyers over brokers.
- Mutual Aid: Create local ticket-sharing networks for community events to bypass secondary markets entirely.
Let it not be said that I am unfair, here is what Elite Events said in regards to the FTC’s enforcement action against them: https://eliteeventsandtickets.net/elite-events-statement-ftc-announcement/
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