The radio personality, 48, was arrested at his home Wednesday morning in connection with securities and wire fraud, according to sources.
Carton and business partner Joseph Meli are accused of running a scheme in which they used funds from new investors to repay earlier investors and other debts. He is also involved in a wire and securities fraud case with another business partner, Michael Wright.
Business investors were allegedly defrauded over $2 million.
In the criminal complaint, it notes that "Craig Carton and Michael Wright, the defendants, and others known and unknown, willfully and knowingly did combine, conspire, confederate, and agree together and with each other to commit offenses against the United States."
"We are aware of the situation and are cooperating with authorities," said a CBS Radio spokesperson.
"I am aware now why Craig was not here this morning. Unfortunately, he was arrested. The station is aware and cooperating with authorities. I'm taken aback and surprised just as everybody else is. I have no other information. I thought he called in sick this morning," said co-host Esiason during the show, "I guess there will be more news to come from somewhere, but it's not coming from me since I don't have it."
Carton began his broadcasting career in 1991 at WGR Radio. He became the co-host with former NFL quarterback Boomer Esiason in 2007 for the popular sports talk show “Boomer and Carton in the Morning.”
It was unclear who will represent Carton in court.