Source: World News Era
Latin music operator Jose ‘Chenel’ Medina Teran’s sudden rise to wealth was rather surprising, as was with his business partner Webster ‘Yenndi’ Batista Fernandez. They were both rather local in the music industry, but rose up in the society to drive their own Lamborghini’s. Their sudden jump clearly gave rise to significant gossips among people working in the music business in Phoenix, Arizona.
Towards the end of last year, the government came in front with the reason of the pair’s sudden wealth. According to them, Teran and Batista had gotten into maintaining one of the biggest YouTube music royalty scams ever. This is the one that generated an IRS investigation, and their indictment in the month on 30 instances of conspiracy, money laundering, identity theft and wire fraud.
As specified by court filings, the duo, for a period of four years came up with a firm they referred to as MediaMuv to burn $23 million off master and publishing privileges for Latin music copyrights they had no control over. Adrev, the famous rights management firm, that Downtown Music Holdings owns, went on to claim the majority of these particular royalties.
The pleas of the defendants in the case:
Teran pleaded not guilty to the claims, and is set for trial this year in November. Contrastingly, Batista got hold of a plea deal four months ago, owning guilt to a single count of wire fraud, along with that of conspiracy. As an extension of this, he disclosed the main points to the federal court. Certain lawyers, along with a representative from IRS refused to comment on the case as it is still continuing.
This deal and indictments, led to some astonishment among the Latin Music industry. The deal showed how it needn’t be a criminal genius to steal royalties that belonged to music creators. Sources stated how such instances of fraud are common in the industry. However, YouTube fraudsters generally only claim small parts of the music that they think had not been claimed adequately, and that no one would be able to detect it.
In accordance to the agreement, Batista revealed that their company started the fraud by signing a deal with AdRev for assistance in administration of the music. He confessed to sending falsified deals, three in number, with firms that were in charge of artists to AdRev and YouTube in order to cheat them.