The Federal Trade Commission brought a case against Elite Events and Tickets LLC, along with owners Kevin W. McKerley and Aaron L. Fera. They broke the Better Online Ticket Sales Act by scooping up millions in tickets through banned techniques. Smart Scalpers, as the operation calls itself at smartscalpers.com, will fork over $300,000 in penalties. The settlement stacks up to more than $10.7 million when you count everything.
The complaint said the operation dodged ticket caps at over 2,400 shows from September 2024 through March 2025. They flipped those tickets on resale sites and pocketed fat profits.
“Consumers should be able to purchase tickets to events without having to contend with bad actors who drive up prices and make it harder for fans to see their favorite artists and athletes,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, per a press release from the Federal Trade Commission. “Elite Events operators utilized a range of unlawful tactics to deprive consumers of the opportunity to purchase tickets for events at prices set by the ticket issuers.”
The operation recruited hundreds of agents. Many worked overseas. These agents grabbed tickets using shady methods, including hundreds of fake accounts with made-up names, phony addresses, and bogus phone numbers. Some accounts borrowed names from company workers.
McKerley and Fera showed up on CBS Mornings in April 2025 for a documentary. They bragged about the ticket-flipping business and their special software. If investigators catch them lying about money? The full $10.7 million bill comes due right away.