FTC says ticket broker used fake accounts and virtual cards to scoop up 86,000 tickets

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The Federal Trade Commission is taking action against a Georgia ticket broker that allegedly used a network of fake accounts, foreign ticket buyers and virtual credit cards to buy large blocks of tickets before ordinary fans had a chance.

Elite Events and Tickets LLC, which also operated under the names Smart Scalpers and SmartScalpers.com, and its owners, Kevin W. McKerley and Aaron L. Fera, have agreed to pay $300,000 to settle allegations that they violated the federal Better Online Ticket Sales Act, commonly known as the BOTS Act.

According to the FTC, the company exceeded ticket-purchase limits for more than 2,400 events involving over 250 performers between July 2022 and August 2025.

The agency’s court complaint says Elite Events acquired 86,869 tickets in excess of posted limits and earned more than $3.5 million in profits by reselling them through platforms including StubHub, Vivid Seats, SeatGeek, TickPick, Viagogo and Gametime. Resale prices were frequently 100% to 500% higher than the original ticket price, the complaint alleges.

“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.

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How the alleged operation worked

Ticket sellers such as Ticketmaster and AXS commonly restrict buyers to four, six or eight tickets for popular events. They may also monitor account names, payment cards, email addresses, phone numbers and internet addresses to identify buyers attempting to evade those limits.

The FTC alleges that Elite Events bypassed those safeguards by using:

• Hundreds of ticket accounts created with fictitious identities or information belonging to employees and purchasing agents;
• Virtual credit card services capable of generating thousands of different card numbers;
• Proxy services that disguised the location and internet address of ticket buyers; and
• Multi-session browsers that allowed buyers to operate numerous independent purchasing sessions at once.

The company allegedly employed hundreds of ticket-buying agents, including workers based outside the United States, to make purchases through the different accounts.

Its business strategy targeted events expected to sell out quickly. According to the FTC complaint, the company’s internal “Ticket Broker’s Playbook” advised workers to monitor social media, ticket alerts, performer popularity and resale-market trends to identify tickets likely to rise in value.

Metallica tickets provide one example

The FTC said Elite Events used 75 accounts to obtain 277 tickets to a Metallica concert at Virginia Tech, even though the seller limited purchases to six tickets per buyer.

The company allegedly paid between $50 and $270 per ticket and later offered the tickets on resale markets for $100 to $400 each.

The complaint says the company used similar tactics to obtain tickets to concerts, music festivals, comedy shows, professional and college sporting events, NASCAR races and major rodeos.

In all, Elite Events acquired more than 100,000 tickets through more than 42,000 transactions for approximately 5,700 events, according to the court filing. The FTC’s case focuses on the 2,431 events where the company allegedly exceeded the maximum purchase limit.

A $10.7 million penalty — mostly suspended

Under the proposed court order, Elite Events, McKerley and Fera face a civil penalty of more than $10.7 million.

However, the order requires them to pay only $300,000 because of their reported inability to pay the full judgment. The remaining penalty will be suspended unless the FTC determines that the defendants misrepresented their finances.

The settlement would permanently prohibit the defendants from using multiple accounts, internet addresses, multi-session browsers or payment methods held in other people’s names to evade ticket limits.

The order must be approved and signed by a federal judge before it becomes final. The case was filed July 27 in the U.S. District Court for the Southern District of Georgia.

What is the BOTS Act?

Congress enacted the Better Online Ticket Sales Act in 2016 after growing complaints that professional brokers were using automated software and other technical methods to overwhelm ticket websites.

The law prohibits circumventing online security systems used to enforce ticket limits. It also prohibits knowingly selling tickets obtained through such violations.

Despite its name, the law is not limited to conventional automated “bots.” It also covers tactics such as fake accounts, disguised internet addresses and multiple payment methods when they are used to circumvent a seller’s technological controls.

The law generally applies to public concerts, theater performances, sporting events and similar activities held at venues with capacities of more than 200 people. Both the FTC and state attorneys general may enforce it.

The FTC brought its first BOTS Act enforcement cases in 2021 against three New York ticket brokers accused of using automated software, fake accounts and concealed internet addresses to acquire more than 150,000 tickets. Those defendants agreed to pay a combined $3.7 million after larger penalties were suspended because of their inability to pay.

What this means for ticket buyers

The case may discourage some large-scale brokers, but it will not immediately eliminate high resale prices or make tickets easier to obtain.

Ticket limits work only when sellers can distinguish individual fans from coordinated brokerage operations. Brokers with large numbers of accounts, payment cards and internet addresses can make dozens or hundreds of purchases look like unrelated transactions.

Consumers shopping for popular events should:

• Begin with the performer, team or venue’s official website rather than a search advertisement;
• Check whether the listing is from the original seller or a resale marketplace;
• Compare the total price, including mandatory fees, before paying;
• Be skeptical of countdown clocks and claims that only one or two tickets remain;
• Review refund and event-cancellation policies;
• Pay by credit card, which generally offers stronger dispute rights than cash apps, wire transfers or cryptocurrency; and
• Save screenshots of the listing, seat location, promised delivery date and total price.

Consumers who encounter deceptive ticket listings or suspect that a seller is violating purchase limits can submit a report at ReportFraud.ftc.gov.