Rapper BigRigBaby, in an image shared on his Instagram account.RR SS
BigRigBaby’s latest album is called Depressed with money. The US Securities and Exchange Commission (SEC) has now frozen their funds. It accuses the rapper, whose real name is Patrick Earl Williams, and his partner Rolf Max Hirschmann of setting up a pyramid scheme with marijuana as a claim through the firm Integrated National Resources (INR), which did business under the name WeedGenics.
Both raised money from investors promising to invest it in a profitable cannabis growing business. They said that they were going to expand their facilities and that the profitability was going to be 36%. But it was all a farce.
According to the complaint, Hirschmann and Williams never owned or operated any facilities. “Although the defendants offered financial data, locations and even photographs of the alleged facilities, none of them were ever owned by or associated with the defendants. Therefore, the defendants’ claims that these facilities generated tens of millions of dollars came out of nowhere,” he says.
The complaint alleges that “investor funds were not used to develop or expand any growing facilities, as promised by the defendants.” Instead, once investor money was received into accounts controlled by the defendants, those funds were deliberately transferred to multiple other accounts, “going back and forth,” he adds, in a “torturous movement of money [que] It was intended to hide the truth.
Funds fraudulently seized from investors were used to pay personal expenses and to reward other investors. “From purchasing luxury cars to financing residential improvements to paying for jewelry and adult entertainment, defendants and co-defendants spent tens of millions of dollars of investor money on items that had nothing to do with a growing facility [de marihuana]”, the complaint states. More than $16 million of investor money went to seed investors to maintain the fictional pyramid, known as a Ponzi-type scheme.
The complaint further alleges that, in an attempt to avoid discovery, Hirschmann, who was acting as the face of the company, used the assumed name of Max Bergmann whenever he communicated with investors, while Williams, as vice president of the company , worked behind the scenes while spending a portion of the investor funds on his career as a rapper, in which he has not been very successful. His number of monthly listeners on Spotify is 35, as it appeared yesterday on the platform.
The letter lists some of the rapper’s expenses. He spent $625,000 on dinner, jewelry, adult entertainment and other personal expenses, $116,000 on limousine services and more than $18,000 on his music career, including payments to producers, DJs and iHeart Media. That’s nothing compared to the millions of dollars transferred to Williams’ personal bank accounts or withdrawn in cash.
His partner spent 5.5 million dollars on real estate and reforms, 3.8 million on luxury cars, 4.4 million with credit cards, one million dollars in what the complaint calls “payments to women” without further ado. explanations.
Along with multi-million dollar transfers and expenses from other co-defendants, the SEC pegs the amount fraudulently taken at $60 million. The supervisor has halted an ongoing securities offering by INR and has obtained emergency court orders against INR, Hirschmann, Williams and several co-defendants, including a temporary restraining order, an order freezing their assets and the appointment of a temporary receiver over INR and other entities. A hearing has been set for next week.
The SEC’s complaint requests precautionary measures, restitution with default interest, civil penalties and disqualification of managers and directors. The SEC also claims the defendants for the return of damages.
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