Uh-oh! Teddy Riley is in trouble.
The music producer and artist is accused of scamming investors out of hundreds of thousands. Now he’s being sued for $1.9. million for conspiracy and fraud.
The Receivables Exchange, an online investment company, is an electronic marketplace. Sellers can auction off eligible receivables for sale to investors.
The investment company sells off debt owed to them. As the debtor owes money, the buyer can legally collect on that money.
According to the JasmineBRAND.com, Riley agreed to sell receivables back in 2013 through his TR Music Company. The investment company claimed he sold receivables to fake accounts. This money would never be paid by the account debtor TR Music, but he collected the money from the sale.
Riley allegedly cheated buyers out of a total of $326,480, which he received due to the fake accounts he created. Also, he shared the fraudulent money with co-conspirators.
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