Swizz Beatz was accused of receiving more than $7 million linked to the 1MDB scandal in a lawsuit filed in New York on Wednesday (October 2). According to court documents obtained by AllHipHop, liquidators sued the producer for intentional fraudulent conveyance, constructive fraudulent conveyance and unjust enrichment.
The 1MDB scandal is one of the biggest corruption scandals in the world. Authorities say billions of dollars were stolen from the Malaysian state fund 1MDB in a scheme involving fugitive businessman Jho Lo, his associate Eric Tan and others.
Fugees member Pras Michel was convicted on multiple charges for orchestrating an unregistered, back-channel campaign to get U.S. officials to stop investigating Low’s crimes. Low and his associates allegedly gave $7.3 million in stolen funds to Swizz Beatz, whose real name is 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 read. “Throughout the early 2010s, Low befriended many U.S. celebrities including Dean and his wife Alicia Keys.
Liquidators sued Swizz Beatz to recoup funds obtained from Affinity Equity International Partners Limited and Alsen Chance Holdings Limited, which were linked to the 1MDB scandal. Both companies were placed in liquidation proceedings in the British Virgin Islands.
“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 lawsuit explained. “Consequently, a net amount of $7,300,000 was conveyed from the debtors to the defendants.”
Alsen Chance gave $1.5 million to Swizz Beatz Productions Inc. in September 2012. Payments of $1 million and $800,000 were sent in October 2012.
Affinity sent $800,000 to Swizz Beatz’s Monza Studios in November 2013 and $1 million in December 2013. Swizz Beatz received $500,000 in June 2014, $300,000 in July 2014 and $1.4 million in September 2014.
Alsen Chance and Affinity were incorporated under the BVI Companies Act. The BVI Court appointed liquidators to both companies “as part of the global asset recovery efforts for the benefit of the debtors’ creditors, being 1MDB and SRC International, and therefore ultimately the people of Malaysia.”
The liquidators sought $3.3 million in damages from Swizz Beatz Productions, $2.2 million from the producer and $1.8 million from Monza Studios. The plaintiffs also requested money for attorneys’ fees and other court costs.