- Associated Press - Tuesday, April 5, 2016

SIOUX FALLS, S.D. (AP) - The owner of a Sioux Falls-based record company has admitted to gambling away more than $1 million in investment money.

Madhouse Entertainment founder Michael Zimmer was arrested in January on eight counts of federal wire fraud. The Argus Leader reports (https://argusne.ws/1q2X5Yv ) that he pleaded guilty to one count on Monday.

Zimmer was accused of asking people to invest in his company to promote rap concerts. Authorities allege the concerts never happened, and Zimmer used most of the money for gambling trips to Las Vegas; Atlantic City, New Jersey; and Larchwood, Iowa.

Zimmer was accused of stealing more than $1.1 million from investors beginning in July 2014. He faces up to 20 years in federal prison during his sentencing June 27.

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Information from: Argus Leader, https://www.argusleader.com

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