Mark Hotton, the West Islip man accused of inventing phony investors for a Broadway musical, is in negotiations for a plea deal, according to Newsday.
Hotton, 46, appeared in Manhattan federal court Friday. Assistant U.S. Attorney Edward Diskant told U.S. District Judge John Koeltl that “The defendant and government are engaged in active discussions regarding a disposition,” reports Bloomberg.
A former stock broker, Hotton has been held without bail since his October arrest when federal prosecutors charged him with defrauding producers of the show "Rebecca: The Musical" by fabricating bogus investors, while collecting more than $30,000 in fees and commission.Prosecutors allege that Hotton went so far as to fake the death of one phony investor.
As details of the scheme unraveled, funding for the production fell apart.
Hotton is facing additional federal fraud charges from an unrelated case in Central Islip Court.