Backstreet Scalping

A ticket-scalping scandal has erupted following a recent Backstreet Boys concert at the Pepsi Center in Denver. Hundreds of prime tickets controlled directly by the show’s promoter, Hollywood-based House of Blues Concerts, ended up in the hands of brokers who resold them to fans for about 10 times their face value, sources said. Some fans paid as much as $350 for tickets to the Oct. 31 concert. Backstreet Boys managers Jeff Kwatinetz and Michael Greene didn’t return calls Friday, but sources say the pop group is furious and their representatives have privately accused House of Blues of participating in the scalping of the tickets. The pop act is expected to release a statement about the controversy today.

On Friday, an executive at House of Blues denied that the company had any involvement in the ticket scalping but said it had launched an internal investigation into the matter. The promoter said it sold the tickets in question to business clients and didn’t know how they landed in the hands of scalpers.

Music industry sources say promoters and venues have long resold tickets to brokers for cash without the knowledge or consent of artists--a practice that would violate state and federal laws.