Swizz Beatz Sued For Allegedly Receiving Millions In Stolen Funds

Swizz Beatz now finds himself in the middle of one of the world’s largest current corruption scandals. Moreover, according to court documents reportedly obtained by AllHipHop, authorities filed a lawsuit in New York on Wednesday (October 2) accusing him of receiving $7.3 million of stolen funds from Jho Low and his associates amid the 1MDB scheme. For those unaware, according to officials, this refers to the theft of billions of dollars from the Malaysian state fund 1Malaysia Development Berhad (1MDB) by business fugitive Jho Low and others, including associate Eric Tan. It’s important to note that the Ruff Ryder producer’s connection is still an alleged one at press time, and that Low denies any involvement.

Furthermore, liquidators sued Swizz Beatz for both intentional and constructive fraudulent conveyance, as well as unjust enrichment. But he wasn’t the only hip-hop star that came up in this case. Authorities convicted Fugees member Pras last year for attempting to stop the United States’ investigations into Jho Low. Back to Swizz, though, real name Kasseem Dean: “As the 1MDB Fraud was underway, Jho Low became a well-known figure in the Hollywood scene and developed a reputation as a businessman with deep pockets and a penchant for hosting lavish, star-studded parties and group vacations,” the lawsuit against him reads. Throughout the early 2010s, Low befriended many U.S. celebrities including Dean and his wife Alicia Keys.”

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Swizz Beatz At The 2024 Breakthrough Prize Ceremony

Swizz Beatz Lawsuit Fraud Corruption Stolen Money Pras Hip Hop News
LOS ANGELES, CALIFORNIA – APRIL 13: Swizz Beatz attends the 2024 Breakthrough Prize Ceremony at Academy Museum of Motion Pictures on April 13, 2024 in Los Angeles, California. (Photo by Taylor Hill/Getty Images)

Liquidators want to recoup the cash stolen from the 1MDB-linked Affinity Equity International Partners Limited and Alsen Chance Holdings Limited, which were in liquidation processes in the British Virgin Islands (BVI). “Between September 21, 2012 and September 4, 2014, Jho Low and/or Eric Tan caused the debtors to transfer $7,300,000 to defendants and, during that same time period, the debtors did not receive any money back from the defendants or any other consideration from the defendants in exchange for the fraudulent transfers,” the suit continued. “Consequently, a net amount of $7,300,000 was conveyed from the debtors to the defendants.” Alsen Chance reportedly handed $1.5 million to the Verzuz creative’s company in September of 2012. Two payments of $1 million and $800K followed in October.

On the other hand, Affinity reportedly paid Swizz Beatz’s Monza Studios $800K in November 2013, with $1 million more arriving in December. The Elon Musk partner also received $500K in June 2014, $300K in July, $1.4 million in September, per the court documents’ allegations. Through incorporation under the BVI Companies Act, the BVI Court appointed liquidators to Alsen Chance and Affinity to contribute to “global asset recovery efforts for the benefit of the debtors’ creditors, being 1MDB and SRC International, and therefore ultimately the people of Malaysia.” Liquidators seek $3.3 million in damages from Swizz Beatz Productions, $1.8 million from Monza Studios, and $2.2 million from Swizz himself, as well as other legal fees.

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