DOJ sues San Diego broker for $120M in illegal ticket resales

The U.S. Department of Justice and Federal Trade Commission sued San Diego-based REPS & Company and three executives for allegedly violating the Better Online Ticket Sales Act. The complaint claims the firm used bot networks and offshore workers to buy 18.5 million tickets for 83,000 events, generating over $120 million in profit by reselling them at inflated prices.
Key points
- The civil lawsuit was filed on October 15, 2026, in San Diego federal court.
- Prosecutors allege REPS used thousands of fake accounts, VPNs, and SIM cards to bypass purchase limits on Ticketmaster and AXS.
- The company allegedly spent over $1.3 billion to acquire tickets for concerts, sports, and theater events between January 2022 and October 2025.
- Specific examples include buying 7,624 tickets for a Beyoncé concert and 5,430 tickets for a Pitbull show, yielding profits of approximately $833,000 and $120,000 respectively.
- The government seeks monetary relief, civil penalties, and a permanent injunction to stop the alleged conduct.
Background
This action follows a 2025 executive order by President Trump prioritizing enforcement of the BOTS Act, which had been rarely invoked in its first decade. It is the largest BOTS Act enforcement action to date, surpassing previous cases against brokers like Key Investment Group and Elite Events, which involved profits in the millions rather than hundreds of millions. The government has also sued Live Nation over similar allegations, though that case remains pending.
How outlets are covering it
All four sources agree on the core facts: the $120 million profit, 18.5 million tickets, and 83,000 events. Billboard and Rolling Stone emphasize the scale of the operation and the specific artists targeted, such as Beyoncé and Post Malone. The Hollywood Reporter highlights the broader context of government scrutiny in the live music industry, including the pending Live Nation lawsuit. The San Diego Union-Tribune provides local context, noting the company is based in the Bay Ho neighborhood. No source disputes the allegations, but REPS & Company has not publicly responded to the suit.
Why it matters
The case signals a significant escalation in federal enforcement against ticket scalping, targeting a company with a business model that allegedly deprives ordinary consumers of access to reasonably priced tickets. It may set a precedent for future BOTS Act violations and could impact the secondary ticketing market.
What to watch
The case will proceed in federal court, where the government will seek to prove the alleged violations and request penalties and an injunction. REPS & Company and its executives are expected to respond to the complaint, potentially through legal counsel. The outcome could influence future enforcement actions against other ticket brokers and platforms.
- Trump administration sues San Diego company for alleged massive ticket scalping scheme San Diego Union-Tribune
- DOJ Sues Broker That Allegedly Netted $120M Flipping Tickets to Beyoncé & More Tours Billboard
- Broker Accused of Illegally Buying 18.5 Million Tickets to Beyoncé, Post Malone, and More Rolling Stone
- Feds Sue Ticket Broker Firm Over Alleged $120M Scheme For Beyoncé, Pitbull Tickets The Hollywood Reporter
- San Diego company accused of illegally scalping 18.5 million tickets Paste Magazine
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