Famous Rappers EXPLOITED In Ponzi Scheme!
According to reports, the SEC recently uncovered a scam that involves two individuals who raised millions from over 60 investors in an unregistered fraudulent securities offering. Read on…
CelebNMusic247.com got word via AllHipHop that investigators claim two promoters raised over $30 million dollars through a Ponzi scheme using big-name hip-hop acts like Kanye West, Jay-Z, and Pitbull without their knowledge.
The site reveals that the SEC contends that from 2015 through 2017 two individuals named Andres Fernandez and Edison Denizard raised millions from over 60 investors in an unregistered fraudulent securities offering.
AHH, reports:
Fernandez and Denizard allegedly ran their scam through two companies, Kadaae Entertainment and AOTG.
What was more disturbing is that their GREED too advantage of eager investors who signed agreements with Kadaae or AOTG, stating that they’d be financing business ventures related to “music entertainment events.”
The SEC claims two promoters in Orlando raised $30 million by capitalizing on famous rappers like Kanye West and Pitbull.
Most of the agreements were for two-to-three-month terms, after which investors would earn their principal back plus a purported return on investment ranging from 20% to 60%.
Andres Fernandez and Edison Denizard even gave certain investors VIP access to various concerts to give their victims a false sense of security.
Unfortunately for investors, the whole thing was a big Ponzi scheme.
In addition to Kanye West and Pitbull, Fernandez and Denizard allegedly fabricated their connections to Enrique Iglesias, Ricky Martin, and even Ice-T and Mickey Bentson’s Art Of Rap Tour.
SEC’s lead lawyer, Andrew Schiff said:
Although the [companies] promoted a handful of concert events for a few lesser-known artists at small Orlando-area venues, they did not produce concerts for any of the major recording artists identified to investors and they had no involvement in the Art of Rap Tour.
The SEC claims the VIP treatment showered on the investors was all smoke and mirrors. They bought tickets from Ticketmaster and StubHub. Making matters worse Fernandez and Denizard allegedly blew at least $2,000,000 on themselves and paid investors back with their own money.
Andres Fernandez recently pleaded guilty and now faces up to 20 years in prison after being charged with being the leader of the scam and hit him with seven charges: four counts of violating the Securities Act and three counts of violating the Exchange Act.
He is due back in court for his sentencing in January of 2020.
