‘Magic Mike’ scheme swindled investors out of $4.2 million, California officials say

Investors lost millions believing they bought shares for the “Magic Mike” stage show in Las Vegas.

The man behind the scheme is accused of spending a large amount of the funds at casinos across the U.S., officials say.

John Santilli Jr., 47, was arrested Tuesday in Rhode Island on federal securities fraud, wire fraud and aggravated identity theft charges stemming from financial activity in California from June 2016 to February 2020, officials say.

Santilli partially owned Aloris Entertainment, LLC, which acquired an interest in Mike’s Mobile Detailing, LLC — the company that operates “Magic Mike Live” at the Hard Rock Hotel and Casino in Las Vegas. The stage show is an adaptation of the “Magic Mike” films about male strippers starring Channing Tatum and Matthew McConaughey.

Santilli is accused of creating a second company named Aloris Magic Mike LP. He falsely told investors this company owned shares that corresponded with a certain amount of interest in “Magic Mike Live,” which entitled them to a percentage of profits from the show, officials say.

Santilli used a doctored legal document from the real agreement to make it appear his second company was a shareholder in Mike’s Mobile Detailing, officials say.

Santilli is accused of defrauding investors of more than $4.2 million. He misappropriated a significant amount of these investments, officials say, including withdrawing over $1 million from casinos.

He was released on a $100,000 unsecured bond.

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