Full Breakdown
Federal Lawsuit Targets San Diego Ticket Broker for Alleged $1.3 Billion Scalping Scheme
By Drooid · · How we work
Alleged Bulk-Ticket Scheme and Federal Action
The U.S. Department of Justice, acting on a referral from the Federal Trade Commission, filed a civil complaint in federal court in San Diego against REPS & Company Inc. and three executives—CEO Ryan Pancheri, President Brian Archibald, and COO Nicholas Totagrande. The complaint alleges the company used automated “bot” networks and thousands of falsified user accounts to purchase tickets for at least 83,000 events between January 2022 and October 2025, exceeding limits set by primary sellers such as Ticketmaster and AXS. Prosecutors say the scheme generated more than $120 million in profit by reselling the tickets on secondary platforms.
Background & Context
The Better Online Ticket Sales Act (BOTS Act) makes it unlawful to circumvent online ticket-purchase limits using automated tools. California lawmakers have introduced two bills this year to ban speculative resale of tickets that sellers do not actually own and to cap resale mark-ups at 10 percent. One bill was signed into law; the other was defeated over concerns it could advantage Ticketmaster.
Data & Statistics
- Events targeted: at least 83,000 concerts, festivals, sporting events, comedy shows, Broadway productions, and touring theater performances.
- Financial outlay: REPS spent over $1.3 billion to acquire approximately 18.5 million tickets.
- Profit: resale activity is alleged to have produced $120.8 million in net profit.
- Illustrative purchases:
- Beyoncé concert (Oct 2023, Arrowhead Stadium, Kansas City): 1,300 accounts bought 7,624 tickets, yielding an estimated $833,323 profit.
- Pitbull concert (2024, New York arena): at least 700 accounts purchased 5,430 tickets, generating an estimated $120,109 profit.
Official Statements & Responses
Assistant Attorney General Brett Shumate said the Justice Department is committed to holding accountable those who illegally exceed ticket-purchase limits and resell tickets with exorbitant mark-ups. The complaint also alleges REPS employed Philippines-based employees, proxy IP services, virtual credit cards, and an internal “error bible” to evade security controls. REPS & Company did not respond to requests for comment at the time of filing.
Why It Matters
If the court grants the requested permanent injunction, REPS would be barred from using automated tools or falsified accounts to bypass ticket-sale limits, potentially restoring greater access to primary-sale tickets for ordinary fans. The case signals heightened federal enforcement of the BOTS Act and could deter similar bulk-purchase operations across the ticket-resale industry.
Conflicting Reports & Gaps
The lawsuit is based on allegations in the complaint; no independent audit of REPS’s financial records has been presented, and the company has not provided a public response. Consequently, the profit figures and purchase volumes remain unverified outside the government filing.
Verbatim Quote
- “REPS’ entire business model is focused on trying to game the ticket-purchasing system in order to obtain as many tickets as possible to resell at inflated prices to consumers,” — Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection.
