Swizz Beatz is facing serious heat after being accused of allegedly receiving over $7 million in stolen funds.
According to court documents obtained by AllHipHop, authorities filed a lawsuit in New York on Wednesday (October 2nd) accusing Swizz, birth name Kasseem Daoud Dean, of receiving $7.3 million in stolen funds linked to the notorious 1MDB (1Malaysia Development Berhad) scandal.
For those unaware, the 1MDB scandal is one of the biggest international corruption scandals in the world. Per AllHipHop, billions of dollars were stolen from the Malaysian state fund 1MDB in a scheme involving fugitive businessman Jho Low and others, including his associate Eric Tan.
Fugees member Pras Michel was convicted on multiple charges for masterminding an unregistered back-channel campaign to persuade U.S. officials to halt their investigation into Jho Low’s criminal activities. Low and his associates allegedly funneled $7.3 million in stolen funds to Swizz Beatz.
“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 reads. “Throughout the early 2010s, Low befriended many U.S. celebrities including Dean and his wife Alicia Keys.”
Authorities sued Swizz Beatz to recoup funds obtained from Affinity Equity International Partners Limited and Alsen Chance Holdings Limited, both linked to the 1MDB scandal.
“Between September 21, 2012, and September 4, 2014, Jho Low and/or Eric Tan caused the debtors to transfer $7,300,000 to the 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 lawsuit continues. “Consequently, a net amount of $7,300,000 was conveyed from the debtors to the defendants.”
According to the suit, Alsen Chance “gave $1.5 million to Swizz Beatz Productions Inc. in September 2012.” Payments of $1 million and $800,000 were sent to the iconic producer in October 2012.
Affinity allegedly sent $800,000 to the Dope Money rapper’s Monza Studios in November 2013 and $1 million in December 2013. He also reportedly received $500,000 in June 2014, $300,000 in July 2014, and $1.4 million in September 2014.
“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,” the lawsuit explains.
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.
