If you think that Pras Michel from the Fugees is the only hip-hop artist connected to the 1Malaysia Development Berhad (1MDB) scandal, you would be wrong. New reports link producer and Verzuz owner Swizz Beatz to the international multi-billion-dollar embezzlement scheme.
The International Scandal
The 1MDB scandal revolves around a massive theft from Malaysia’s sovereign investment fund, which was established in 2009 to promote economic development. Over $4.5 billion was misappropriated through fraudulent transactions involving high-ranking officials and their associates, according to the Justice Department.
The scandal gained global attention, with multiple countries launching investigations into the massive theft. The U.S. Department of Justice, which has filed lawsuits to recover assets, calls it one of the largest cases of financial fraud in history.
Several American celebrities, in addition to the Fugees founder, became linked to the scandal through their associations with Jho Low, a financier central to the 1MDB controversy. Low, who remains a fugitive from justice, is widely speculated to be hiding in China.
Leonardo DiCaprio, for example, received gifts like a Picasso painting from Low, who also helped fund the movie “The Wolf of Wall Street.” Singer Rihanna performed at a gala hosted by Low, and Kim Kardashian attended swanky parties he financed.
Now, new court documents filed in New York on Oct. 2 and obtained by AllHipHop and other outlets, are pointing to hip-hop producer Kasseem “Swizz Beatz” Dean as another A-lister wrapped up in the controversary.
The ”We Are the Streets” producer is alleged to have received $7.3 million from Low and his associates, according to the filing.
According to the lawsuit filed by liquidators of two British Virgin Islands companies linked to the stolen funds, “throughout the early 2010s, Low befriended many U.S. celebrities including Dean and his wife Alicia Keys” and used his swindled money to make himself a stand out in Hollywood, throwing “lavish, star-studded parties and group vacations.”
The Ruff Ryder’s receipt of the money connected him to the crime has now led investigators to the Grammy winning chart-topper to recoup funds obtained from Affinity Equity International Partners Limited and Alsen Chance Holdings Limited, both linked to the 1MDB scandal and 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, according the court filing.
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, the suit claims.
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.
It is unknown why Swizz Beatz, a successful businessman with an estimated net worth of $150 million and a graduate of Harvard’s Owner/President Management Program, needed the millions, as he had many ventures going on at the time.
Between 2011 and 2015, Swizz Beatz made several significant business deals, leveraging his influence in the music and art industries.
In 2013, Swizz Beatz became a key partner in Monster, the audio electronics company, helping to rebrand it after market struggles. He played a major role in marketing and product development, particularly promoting Monster’s headphones, which expanded his influence in the tech industry.
Beyond Monster, the music mogul also made significant strides in the art world. As a co-founder of the Dean Collection with his wife, he became a prominent contemporary art collector. He formed partnerships with renowned art institutions and championed emerging artists, using his platform to elevate their global recognition.
During this time, he still received money from his publishing on the over 160 songs in his discography.
Afterward, he has expanded his portfolio to include his Verzuz brand and even a Saudi camel racing team that competes in Dubai.
The Bronx native has not responded publicly to the claims against him.
