FTC targets ticket broker accused of bypassing limits on 2,400 events
The Federal Trade Commission says a Georgia ticket broker used hundreds of accounts and digital tools to bypass ticket-purchase limits for more than 2,400 live events, then resold many of the tickets at steep markups.
The FTC filed a complaint and a stipulated order on July 27, 2026, in the U.S. District Court for the Southern District of Georgia, Augusta Division. The defendants are Elite Events and Tickets LLC, which also does business as Smart Scalpers or smartscalpers.com, along with owners Kevin W. McKerley and Aaron L. Fera.
The case is pending. The complaint contains allegations by the FTC, not findings after a trial. Under the proposed stipulated order, the defendants neither admit nor deny the allegations except for facts needed to establish the court’s jurisdiction. The order would take effect only after the district court approves and signs it.
What the FTC alleges
According to the complaint, the defendants exceeded posted ticket limits from July 2022 through August 2025 on at least 2,431 events involving more than 250 performers. The FTC alleges that Elite Events amassed 86,869 tickets for those events and earned more than $3.5 million in resale profits.
The complaint says the company acquired more than 100,000 tickets across more than 5,700 events, but that the 86,869-ticket figure covers events where the defendants allegedly exceeded the maximum posted limit. The FTC says the tickets were later listed on secondary marketplaces, often at markups of 100% to 500% over the original purchase price.
The agency alleges that the broker used accounts opened with fictitious names, addresses and phone numbers or with information belonging to employees and agents. It also alleges the use of virtual credit-card accounts capable of generating thousands of card numbers, proxy internet addresses that made purchases appear to come from different locations, and software that allowed multiple independent browsing sessions.
In the FTC’s account, those tools helped the defendants get around ticket issuers’ account, payment, identity and network checks. The agency says the business focused on high-demand events with limited inventory, including concerts, festivals, comedy shows and sporting events.
The Metallica example
The FTC’s announcement cites a Metallica concert at Virginia Tech as an example. It says 75 accounts were used to purchase 277 tickets for the May 7, 2025, concert even though the seller limited public-sale purchasers to six tickets.
The complaint describes separate fan-club, student and public-sale limits, so the six-ticket figure should not be treated as one universal limit for every buyer or presale category. The complaint also says the tickets were bought for between $50 and $270 each and later resold for between $100 and $400 each.
What federal law prohibits
The FTC is relying on the Better Online Ticket Sales Act, commonly known as the BOTS Act. The law prohibits circumventing a security measure, access-control system or other technological control used by a ticket issuer to enforce posted ticket limits or online purchasing rules.
The law also prohibits selling or offering to sell tickets obtained through that type of circumvention when the seller participated in the conduct, could control it, or knew or should have known how the tickets were acquired. It covers public concerts, theatrical performances, sporting events, shows and similar activities at venues with seating or attendance capacity of more than 200 people.
The law does not make every ticket resale, multiple-account purchase or price markup illegal. The key issue is whether the conduct circumvented the issuer’s security or access controls used to enforce ticket limits or purchasing rules.
Penalty and case status
The stipulated order would enter a civil-penalty judgment of $10.758 million against Elite Events, McKerley and Fera, jointly and severally. It requires $300,000 to be paid within seven days after the order is entered. The remaining amount would be suspended based on the defendants’ financial representations.
The suspended balance could become due if the court later finds that a defendant failed to disclose a material asset, materially misstated an asset’s value or made another material misstatement or omission about finances. The order would also permanently bar the defendants from the alleged ticket-limit circumvention practices, including using multiple accounts, IP addresses or multisession browsers to evade limits.
The FTC’s case page lists the matter as pending. The proposed order has the force of law only if the district court approves and signs it.
What fans can do
For concert and show tickets, fans should start with the artist, venue, promoter or authorized ticket seller. Check the total price, including fees, before completing a purchase, and be cautious with websites that use misleading artist or event names in their web addresses.
A resale listing by itself does not establish that a ticket was obtained illegally. Consumers who suspect deceptive resale activity or other bad business practices can report them to the FTC through ReportFraud.ftc.gov.
The next developments to watch are court action on the stipulated order and whether ticket platforms, venues, promoters or state regulators change account, payment and resale controls in response to the case.
Sources
Discover more from Interactive News
Subscribe to get the latest posts sent to your email.
