One of the individuals involved in a fraudulent scheme targeting YouTube content has been sentenced to a 70-month prison term, as per the request of the United States. The lengthy sentence aims to serve as a deterrent to potential fraudsters.
In 2021, Jose “Chanel” Teran from Scottsdale, Arizona, and Webster Batista Fernandez from Doral, Florida, were accused of orchestrating a scam that involved siphoning off royalties from YouTube. The duo claimed ownership of more than 50,000 Spanish-language songs that were not being monetized and proceeded to upload them onto the platform. To bolster their claims, they even presented forged notes from the actual artists, affirming their control over the music rights.
The pair gained approval from YouTube for participating in the platform’s Content ID system, designed to identify songs featured in uploaded videos so that rightful owners can receive ad revenue. Additionally, they entered into a sound recording and audiovisual content license agreement with Google, allowing the tech giant to offer the music to users in exchange for monetization revenue.
The fraudulent scheme orchestrated by Teran and Batista involved establishing a company called MediaMuv, which served as the means for collecting illicit funds. Through a third-party entity identified by the initials A.R., MediaMuv managed to gain the trust and recognition of YouTube as a Content ID member.
Financial Benefits and Lavish Expenditures
MediaMuv employed a team of approximately five to eight individuals who utilized specialized software to identify unmonetized music, which would then be added to their catalog. One notable track, “Me Llamas” by Piso 21, yielded Teran and Batista over $100,000 in revenue, thanks to the video accumulating more than 700 million views on YouTube.
The ill-gotten gains were not squandered frivolously. A portion of the funds was allocated towards purchasing a luxurious $550,000 mansion, while $129,000 was spent on acquiring Teslas. Additionally, $93,000 went towards acquiring a BMW hybrid, and $62,000 was used to acquire various jewelry items.
Teran’s attorney wrote, “Mr. Teran believed Mr. Batista to be a successful businessman in the music field with whom he could realize his dream of producing music, movies, and music videos. Believing the co-conspirator to be a close friend, Mr. Teran was excited to be the recipient of the co-conspirator’s advice and partnership.”
The prosecution alleged that Teran, the main defendant in the case, acquired over $6 million through the fraudulent scheme, which he then utilized to finance an extravagant and opulent lifestyle. Shockingly, Teran allegedly received illicit royalty payments through further deception even after being indicted.
The sentencing for Teran is scheduled to take place later this month, and the prosecution recommends a prison term of 70 months. On the other hand, Batista, another individual implicated in the case, is set to be sentenced in August.
MediaMuv’s Scheme: Illicit Gains, Lavish Lifestyle, and the Role of YouTube
The prosecution’s claims regarding Teran’s substantial financial gains and lavish lifestyle have raised significant concerns. If these allegations are proven true, they paint a picture of a person who orchestrated an elaborate fraud and shamelessly exploited the ill-gotten gains to sustain an extravagant way of life.
Furthermore, the allegation that Teran received fraudulent royalty payments even after being indicted is deeply troubling. It suggests a blatant disregard for the law and a willingness to continue engaging in fraudulent activities despite facing legal consequences.
As the sentencing approaches, it remains to be seen how the court will weigh the evidence presented by the prosecution and the defense. The recommended 70-month sentence indicates the seriousness with which the prosecution views Teran’s actions and the harm caused by his fraudulent scheme. The court will have the challenging task of determining an appropriate punishment that considers the extent of the crimes committed, the amount of money involved, and any mitigating or aggravating factors.
Similarly, as Batista’s sentencing hearing looms, the court will have another opportunity to mete out justice and hold individuals accountable for their actions. The outcome of these proceedings will not only serve as a means of retribution but also as a deterrent to potential offenders and a reaffirmation of the legal system’s commitment to upholding justice and protecting the interests of the public.
