Several famous musicians have been accused of misusing Covid relief funds. According to reporting by Business Insider, a group of prominent artists took large sums of money from a pandemic relief fund called the Shuttered Venue Operators Grant that was supposed to help the arts industry. Managed by the Small Business Administration, it was meant to keep “struggling independent venues and arts groups” afloat. Reporting suggests that the likes of Chris Brown, Marshmello, Lil Wayne and more took advantage of the grant, which offered a maximum of $10 million. Keep reading to find out more…
Shuttered Venue Operators Grant Scandal
The Shuttered Venue Operators Grant provided assistance to more than 13,000 members who qualified. The Small Business Administration reportedly utilized “industry-leading fraud controls” to make sure that the funds were appropriately handed out. The grants were supposed to be used to cover “ordinary and necessary” payments, and grantees were required to prove a 25% reduction in revenue between 2019 and 2020 to qualify for the grant. However, the grant reportedly did not consider other assets that artists might own, leading to misuse.
Questionable Spending by Musicians
Lil Wayne reportedly allocated funds to travel in private jets and pay off debts, while Chris Brown and Marshmello were accused of personally benefiting from the grant instead of using it for its intended purpose. Other artists such as Steve Aoki, Shinedown, Rae Sremmurd, and members of Alice in Chains were also mentioned in the report for alleged misuse of funds.
Government Accountability and Investigations
Business Insider consulted with a government-accountability expert who raised concerns about the spending practices, suggesting they may be fraudulent. Artists associated with the business management firm NKSFB reportedly received significant support, leading to questions about financial management and oversight. The Small Business Administration noted that ongoing audits are being conducted to address any potential mismanagement of funds.
Legal and Enforcement Actions
A lawyer for NKSFB defended the firm’s reputation and criticized Business Insider’s reporting. The Small Business Administration emphasized its commitment to investigating any mismanagement of funds and prosecuting wrongdoing. Despite attempts to reach out to artists mentioned in the report, many did not respond to requests for comment.
Conclusion
The misuse of Covid relief funds by famous musicians highlights the importance of transparency and accountability in financial management. As investigations continue and audits are conducted, the impact of these actions on the arts industry and the broader community remains to be seen.
FAQs
Q: What is the Shuttered Venue Operators Grant?
A: The Shuttered Venue Operators Grant is a pandemic relief fund managed by the Small Business Administration to support struggling independent venues and arts groups.
Q: How were musicians accused of misusing Covid relief funds?
A: Musicians like Chris Brown, Marshmello, Lil Wayne, and others were accused of personally benefiting from the grant instead of using it for its intended purpose.
Q: What actions are being taken to address the misuse of funds?
A: Ongoing audits and investigations are being conducted by the Small Business Administration to ensure accountability and prosecute any wrongdoing related to the misuse of relief funds.
Credit: yogossip.com
