Insomniac Events CEO Pasquale Rotella Indicted

May 17, 2013

by: Alexandria Rose

Electric Daisy Carnival founder and Insomniac Events CEO, Pasquale Rotella indicted, could be facing up to 13 years in prison for alleged embezzlement, bribery, and conspiracy in connection with the Los Angeles Memorial Coliseum. He is accused of paying more than $2.5 million of the Coliseum’s money to bribe city officials, says RadarOnline.com. Having just announced an engagement with the mother of his three month old daughter, Holly Madison, Hugh Hefner’s ex girlfriend, and my second favorite Girl Next Door (mmmm….Kendra….), Rotella was released from court on a whopping $1.8 million dollar bail. Rotella, along with five others associated with Insomniac Events, are scheduled for a court hearing on July 29th.

Rotella fell under scrutiny in 2010 after the death of 15 year old Sasha Rodriguez, who had snuck into Electric Daisy Carnival, at the LA Memorial Coliseum, and died as the result of a drug overdose. This prompted criticism of Rotella and Insomniac Events, which Rotella responded to by strengthening security, safety, and medical measures, but ultimately the controversy surrounding his company led to some close eyeballing of the operations of Insomniac Events, and caused Rotella to move Electric Daisy Carnival to Las Vegas, where it’s currently held every year.

Alongside Rotella, former Coliseum events manager Todd DeStefano, former Coliseum technology manager Leopold Caudillo Jr., ex-stadium contractor Tony Estrada, Patrick Lynch, former Coliseum general manager, and Reza Gerami, CEO of Go Ventures, all stand to be indicted on similar charges, according to the LA Times website. Particularly, Lynch and DeStefano stand accused of blowing approximate shit tons of the coliseum’s money on fancy rich-guy stuff, such as golf, massages, and luxury cars (including an allegedly balls-to-the-wall totally sweet Caddy) revealed the LA Times website, which apparently has all the dirt.

Rotella’s lawyer, Gary Jay Kaufman, is quoted on RadarOnline as saying that his client, “has always acted lawfully and appropriately with respect to all of his dealings with the Los Angeles Memorial Coliseum. Any allegations of wrongdoing on the part of Mr. Rotella by the District Attorney’s office are completely baseless and flat-out wrong, both on the law and on the facts.” He also added, “All transactions between Insomniac and the Coliseum were transparent and approved by the Coliseum general manager, his staff, and the attorneys representing the Coliseum. Any charges against Mr. Rotella are clearly politically motivated and publicity driven.”

Pasquale Rotella himself played it cool and told the Las Vegas Sun, “I don’t plan on going anywhere. I have confidence everything is going to work out the way it should, and the truth will prevail. As relaxed as I sound, I take it very seriously. But it’s hard to stress too much when you haven’t done anything wrong.… The facts need to be gone through, and a I have a great team representing me. I’m taking it seriously, but I’m not thinking it’s going to take me away.”

The future of Electric Daisy Carnival and Insomniac Events is unclear, but EDC is still scheduled (and sold out) for June of this year in Vegas. They’ve got shows scheduled for London, the Bay Area, they just had one in New York. Vibe.com suggests, however, that due to an expansion of the Live Entertainment Tax in Nevada, that Rotella may have to begin forking over 10% of all event sales to the state. Until now, he’s been able to avoid the tax due to a clause exempting outdoor music events from the tax. In 2012, EDC made almost $207 million for Clark County and brought 320,000 fans into the Las Vegas Motor Speedway and is the largest electronic music festival and collection of dancing sweaty people in North America.

Source credits:

RadioOnline.com

Redbull.com

LATimes.com

Vibe.com

LasVegasSun.com

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