Like many celebrities, NeYo and Brian McKnight decided to dabble in other business ventures outside of music, in order to grow their empires. But unfortunately, one of their investments has turned out to be a fraudulent scheme that’s cost investors a crazy amount of money. Now, NeYo, Brian McKnight, and other investors are hoping to get the justice they deserve.
On Both Sides of the Fence:
According to Billboard, Kevin Foster, of New Jersey, is accused of orchestrating a multimillion-dollar scam around a company called OXYWater. Foster had convinced several investors, including NeYo and Brian McKnight, to invest in OXYWater. Foster was employed as NeYo’s business manager, when he was advised to invest $2 million in the seemingly lucrative company.
Brian McKnight‘s involvement with Foster was relatively similar. He, too, was convinced to invest in the company. However, the amount he invested has yet to be made public. The government claims Foster failed to disclose all of the details about the investments. Not only was he working as a business manager for the singers, he was also on the other side of the fence working as a controller for OXYwater, earning commissions off their investments.
An Elaborate Scheme:
Although Foster is making headlines for the massive scam, he isn’t the only one being held accountable for it. It has been reported that he had business partners and a married couple was at the center of similar headlines in recent years.
The reports about Foster followed similar reports from 2015, where OXYwater co-founder, Preston Harrison, and his wife, Lovena Harrison, were also sentenced for the defrauding investors, making the investment appear to be lucrative while misappropriating funds for their extravagant lifestyles. However, they didn’t stop there. Investigators also managed to come up with a paper trail of the couple’s fraudulent activities. “Preston Harrison and his co-conspirators made OXYwater appear to be a lucrative and profitable financial investment, touting investments and endorsements from athletes, a musician and others,” said U.S. Attorney Stewart. “After they convinced folks to invest, they misappropriated that money to fuel their own lavish lifestyle, buying items like jewelry, luxury vehicles, weapons and swimming pools.”
A House of Cards:
According to Justice.gov, the couple was sentenced to “83 months in prison and three years of supervised release, and ordered to pay $375,985.15 in restitution to the Internal Revenue Service (IRS) and $8,840,706 to victims of the fraud, and to forfeit $1.1 million, including two vehicles, eight weapons, cash and the contents of a bank account.” Acting Assistant Attorney General Ciraolo released a statement once the sentences were handed down. He compared the lucrative scheme to a “house of cards” revealing just how easy it is for it to fall apart at any minute. “The sentences imposed today reflect the department’s commitment to investigating and vigorously prosecuting individuals who defraud investors, misappropriate funds to finance lavish lifestyles and file false tax returns to conceal their ill-gotten gains,” said Ciraolo. “Like the Harrisons, those who engage in such conduct will pay a heavy price.”
“The Harrisons and their business partner took advantage of unsuspecting investors to line their own pockets,” said Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division. “Hopefully they will now understand that their irresponsible actions have real consequences.”
A String Of Charges:
Kevin Foster is facing 16 charges, including wire fraud, money laundering, bankruptcy fraud, and tax evasion for the multimillion-dollar scam and defrauding both Ne-Yo, Brian McKnight and other athletes and entertainers.
