NEW YORK (AP) — A New York businessman accused of defrauding a fledgling Broadway production has been held without bail after a prosecutor called him a "considerable risk" to the community.

Mark Hotton made his first appearance in Manhattan federal court Wednesday. He faces charges that he ruined the finances for the $12 million Broadway adaption of the psychological thriller "Rebecca" with false promises from phantom investors.

The 46-year-old Hotton was read his rights by Magistrate Judge Gabriel Gorenstein. Prosecutor Edward Diskant called him a risk to flee and a "considerable threat to the community." But the bail argument was cut short when Hotton's lawyer agreed to detention for his client.

Defense lawyer Gerald Shargel said outside court he doesn't find the evidence against his client compelling.