Swizz Beatz is currently being accused of holding on to $7.3 million in stolen 1MDB funds, but according to him, the money was all earned legitimately. Last October, a lawsuit was filed against the producer by British Virgin Islands liquidators. Now, AllHipHop exclusively reports that his legal team is denying allegations that he accepted “fraudulent transfers” from shell companies tied to Jho Low. According to them, the money was from investments and payments for professional services.
“Defendants deny such funds were fraudulently or improperly transferred,” they wrote, insisting that "all payments were “received without actual fraudulent intent and for reasonably equivalent value."
The filing also mentions Swizz Beatz's relationship with Low. It says he "was introduced to Low but deny Low and Dean were friends." Low is accused of orchestrating a scheme to steal billions of dollars using money laundering, bribery, and more. He's also accused of conspiring to violate the U.S. Foreign Corrupt Practices Act (FCPA) and U.S. campaign finance laws.
Swizz Beatz Lawsuit
Swizz Beatz filed a motion to dismiss himself and two of his companies as defendants in the case in February. “[E]ach of the claims asserted by the Liquidators are fatally flawed,” the motion read.
“The [plaintiffs] present this action under the noble premise of recovering assets for the benefit of creditors. In reality, the lawsuit is being used as a bad faith vehicle to pressure the collection of legally, non-recoverable assets by embarrassing, in the [plaintiffs’] own words, a ‘notable record producer,'" it continued.
Judge Naomi Reice Buchwald denied the motion in September. In her ruling, she said that the plaintiff's allegations “are not time-barred,” and that they “have standing to bring their claims and that the Court has subject-matter jurisdiction to hear them” and “pleaded specific facts supporting an inference of actual fraudulent intent.”
