Many musicians struggled during the pandemic.Lil Waynewasn’t one of them.
He sold master recordings from his record label’s artists for more than $100 million.
He was pardoned for felony gun possession in a last-minute action by then-President Donald Trump.
In 2023, Sen. Chuck Schumer received a Grammy on the Hill for his work on the Shuttered Venue Operators Grant. “I believe in the power of the music industry,” he said at the awards event. “I will always, always fight, tooth and nail, Brooklyn style, for you.“Paul Morigi/Getty Images
He purchased a $15.4 million mansion in the mountains of Los Angeles.
On New Year’s Eve 2021, he was scheduled to perform at a concert in Coachella, California.
For expenses related to the concert he never performed, Lil Wayne billed taxpayers nearly $88,000.
Lil Wayne’s publicists didn’t respond to numerous requests for comment on detailed questions.
‘An abuse of federal resources’
The money came from a program called theShuttered Venue Operators Grant.
The stars' spending took place against a backdrop of massive pandemic-relief fraud.
Compared with those better-known programs, the Shuttered Venue Operators Grant had relatively strict eligibility requirements.
NKSFB itself collected more than $7 million by helping its clients obtain the grants.
NKSFB’s managing partner, Mickey Segal, didn’t respond to requests for comment.
The firm’s lawyer Bryan Freedman said NKSFB doesn’t comment on its clients' finances.
In a statement, the SBA said it followed the law.
But the law directed the SBA to examine revenue, not assets.
Business Insider has verified the authenticity of the documents.
“Whether it’s legal or not is up to a lawyer or ultimately to a court.
But it sure smells.”
The SBA said it “implemented industry-leading fraud controls.”
Business Insider’s findings, he added, demonstrate “the need for continued oversight of pandemic-relief programs.”
Chris Brown spent his grant on a big paycheck and a big party.
He also billed taxpayers nearly $80,000 for his 33rd birthday party.
Brown, his attorneys, and managers did not respond to requests for comment.
Representatives for Harlow and Alie-Cox also didn’t respond to requests for comment.
Marshmello, whose real name is Christopher Comstock, received a $9.9 million grant.
In doing so, Comstock paid himself more than any other musician who received grant money.
Comstock’s publicists and his manager didn’t reply to requests for comment, nor did Macauley.
Artists often paid themselves far more than they paid anyone else involved in putting on their live shows.
Aoki is the company’s only officer.
Aoki’s publicists didn’t respond to requests for comment.
Publicists for the band didn’t respond to requests for comment.
The duo’s manager, lawyer, and publicists didn’t respond to requests for comment.
They made hundreds of thousands of dollars more from merchandise sales and other profit distributions in 2022.
The band spent some money to pay its staff.
It paid hundreds of thousands of dollars to sound-equipment-rental firms, videographers, and managers.
But the precarious nature of working in the live-entertainment business didn’t change for some of its employees.
Dachroeden died soon after his diagnosis.
Alice in Chain’s publicists and manager didn’t respond to requests for comment.
Schumer’s press office and chief of staff didn’t respond to comment requests.
“When the shutdowns happened, it was existential.
The grant of less than $120,000 the group received, she said, “utterly saved us.”
The SBA didn’t respond to a question about why it reversed itself.
The business-management firm NKSFB also made millions from the program.
Partners at the firm initially believed that their celebrity clients didn’t qualify for the grants.
The change of heart led to a big payday.
Other white-collar professionals also outearned techs and roadies.
Brown’s manager took 7% of his grant, and Shinedown’s managers received 20% of theirs.
A spokesperson for Greenberg Traurig didn’t answer questions about the firm’s actions.
Partners at Grubman Shire didn’t respond to emails or phone calls.
Bryant and Preyan didn’t respond to requests for comment.
“I was in countless conversations,” he said.
“No one ever discussed artists collecting this money.
It never came up.”
“I will never forget how hard-fought-for this funding was,” she said.
“It’s such a disappointment.”
‘Shut up, sit down.
Process the file.’
The approach had mixed results.
“They were just trying to get money out.
They asked not to be named because they feared retaliation, but their identity is known to Business Insider.
It’s not clear how the agency recovered that money.
“The graft was unbelievable.”
“Everybody kept saying shut up, sit down.
“It was our fault because we threw this thing together in five seconds,” they said.
An SBA spokesperson defended its processes.
“When substantiated, SBA and its law enforcement partners vigorously prosecute suspected wrongdoing.
Meanwhile, the government has recovered at least some money from one musician.
As pandemic restrictions faded, Chris Brown returned to performing.
In early 2021, the IRS notified Brown that he owed $3.2 million in unpaid taxes.
Reach Jack Newsham via email (jnewsham@businessinsider.com) or via Signal (+1-314-971-1627).
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