A Philadelphia court sentenced Electric Factory Concerts exex Allen Spivak and Sidney Payne Monday for defrauding several top rock acts of nearly $ 1 million.
Spivak, VP and part owner of Electric Factory Concerts, was sentenced to six months in prison, six months house arrest and three years probation.
He was also fined $ 100,000.
Payne, a production manager, was sentenced to two months in prison, two months house arrest and three years probation. Payne was fined $ 30,000.
The exex, who must surrender to authorities June 10, pleaded guilty last year to two counts of mail fraud and tax evasion for defrauding the rock groups U2, the Rolling Stones and the Grateful Dead, among others, by falsifying $ 943,758 worth of expenses.
The terms of the plea bargain agreement call for the exex to pay back income taxes on money received, as well as to make restitution to the acts. Sources for many of the acts say they have either received restitution, or have worked out future agreements with the firm.
As part of the sentencing agreement, Electric Factory will also reimburse the Intl. Alliance of Theatrical Stage Employees for funds diverted to Francis O’Shea, former company president. O’Shea was sentenced last April to four months in prison. He has since been paroled.