Press Release  AG Healey Announces Agreement with INDYCAR to Pay $925,000 to Refund Consumers; AG Sues Boston Grand Prix and CEO John Casey in Continued Effort to Recover Money Owed to Ticket Purchasers

Boston — Attorney General Maura Healey announced today that her office has reached an agreement with INDYCAR, LLC. that will refund customers $925,000 for advance tickets purchased to the cancelled Boston Grand Prix. AG Healey also filed suit today against Boston Grand Prix, LLC (BGP) and CEO John Casey, seeking full refunds for all ticket purchasers.

Nearly 4,000 individuals purchased tickets in advance of the planned Labor Day race, spending an estimated $2,086,798.67. BGP refunded customers approximately $400,000 before they stopped giving refunds.

INDYCAR, the race’s sanctioning body, has agreed to pay $925,000 of the amount due.

“I appreciate INDYCAR’s willingness to step up for their fans and help resolve this problem,” AG Healey said. “They’ve gone above and beyond to be a productive part of this solution, and their fans will reap the benefits.”

The AG’s complaint was filed today in Suffolk Superior Court. It seeks full restitution that will make all consumers who purchased tickets whole.

“Boston Grand Prix and its CEO knew full well when they marketed and sold this event that they didn’t have the resources or permits to make it happen,” AG Healey said. “They failed to protect consumers, and we will do all we can to hold them accountable.”

Consumers who purchased tickets and have not received refunds are encouraged to file a complaint with the Attorney General’s Office, but filing a complaint is not required to qualify for a refund. The AG’s office will continue to work to identify those consumers who have not received full refunds, and to determine the amount owed to them.

The AG’s complaint alleges that BGP and Casey solicited and sold advance tickets despite knowing that their business venture was insolvent and that they could not cover the costs of mounting pre-event expenses without using ticket purchasers’ deposits. Rather than cancel the race when they knew the venture was insolvent and that they had not secured all necessary permits, BGP and Casey accepted the deposits from consumers and provided a written guarantee of a full refund in the event of cancellation.  They drew upon those deposits to pay continuing and mounting pre-event costs, leaving only $400,000 for refunds when the event was finally cancelled in late April. The AG’s Office continues to seek and review financial information from BGP and Casey to determine exactly where and how funds were spent.

Following BGP’s formation in 2012, BGP entered a sanctioning agreement with INDYCAR. BGP paid INDYCAR $487,000 as a down payment towards the sanctioning fee. In return, INDYCAR agreed to provide technical assistance, promotional assistance and other oversight over the event, to ensure the Boston Grand Prix met the Verizon INDYCAR Series standards. 

The AG’s complaint alleges that BGP exhausted all of the investor and sponsorship funding before completing pre-race operations, including obtaining all permits and other government approvals to hold the event on public streets in Boston.  

The AG’s Office began investigating the parties involved after receiving consumer complaints. Parties were told to work together to develop a plan to refund consumers or else face legal action by the AG. BGP and Casey failed to do so.

This case is being handled by Assistant Attorneys General Matthew Berge and Dan Krockmalnic, with assistance from Assistant Attorney General Colleen Nevin and Financial Investigator Shannon Roarke.

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