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How rich musicians billed American taxpayers for luxury hotels, shopping sprees, and million-dollar bonuses

Chris Brown, DJ Marshmello and Lil Wayne collaged with a plane and receipts.

Photo by Ethan Miller/Getty Images; Prince Williams/Wireimage; Photo by PATRICK T. FALLON/AFP via Getty Images; (Photo by Ethan Miller/Getty Images; Celina Pereira for BI

Many musicians struggled during the pandemic. Lil Wayne wasn't one of them. He sold master recordings from his record label's artists for more than $100 million. He was pardoned for felony gun possession in a last-minute action by then-President Donald Trump. He purchased a $15.4 million mansion in the mountains of Los Angeles.

And, as a Business Insider investigation found, he received an $8.9 million grant from a little-known pandemic-relief program that he used to cover more than two years' worth of spending on luxury hotel stays, designer clothes, and travel to and from nightclub appearances around the country.

The rapper, whose real name is Dwayne Carter Jr., spent more than $1.3 million from the grant on private-jet flights and over $460,000 on clothes and accessories, many of them from high-end brands like Gucci and Balenciaga. He billed taxpayers more than $175,000 for expenses related to a music festival promoting his marijuana brand, GKUA, including clothing for artists associated with his record label.

He also used grant money to cover nearly $15,000 worth of flights and luxury hotel rooms for women whose connection to Lil Wayne's touring operation was unclear, including a waitress at a Hooters-type restaurant and a porn actress.

Headline: Lil Wayne

On New Year's Eve 2021, he was scheduled to perform at a concert in Coachella, California.

But shortly before his set was scheduled to start, a concert employee announced that the rapper would be unable to perform "because of the wind and the flights." The crowd booed. (Wind gusts of 20 to 30 mph were reported in Southern California that night, but data from Flightradar24 indicates four other private jets flew the exact route Lil Wayne was scheduled to fly.)

Instead, posts on Instagram suggest he partied that night at a club on Sunset Boulevard with the rapper 2 Chainz.

For expenses related to the concert he never performed, Lil Wayne billed taxpayers nearly $88,000.

Lil Wayne's publicists didn't respond to numerous requests for comment on detailed questions. Reached by text, Lil Wayne made a sexually explicit overture to a reporter and did not respond to questions.

'An abuse of federal resources'

The money came from a program called the Shuttered Venue Operators Grant. Signed into law by Trump in 2020 and championed by lawmakers including Sen. Chuck Schumer, it was established as a lifeline for struggling independent venues and arts groups during the pandemic.

But pop stars used the program as a piggy bank to keep the party going, reporting by Business Insider shows.

The stars' spending took place against a backdrop of massive pandemic-relief fraud. The Paycheck Protection Program and Economic Injury Disaster Loans gave out as much as $200 billion in suspected false claims, losses that combined with false unemployment-benefit claims amount to what the FBI has called the largest fraud in history. Compared with those better-known programs, the Shuttered Venue Operators Grant had relatively strict eligibility requirements.

Still, accounting firms and money managers soon realized their stadium-filling musician clients might be eligible for grant money via their loan-out companies — corporate entities used to handle the business of touring. Grants awarded to clients of one high-powered entertainment-business-management firm, NKSFB, totaled at least $207 million, BI previously reported. NKSFB itself collected more than $7 million by helping its clients obtain the grants.

NKSFB's managing partner, Mickey Segal, didn't respond to requests for comment. The firm's lawyer Bryan Freedman said NKSFB doesn't comment on its clients' finances.

Grantees received up to $10 million that they could spend on certain "ordinary and necessary" expenses for their entertainment businesses. They had to make a good-faith statement to the Small Business Administration, which oversaw the program, that the grant was necessary to support the loan-out company's "ongoing operations" and show that the company's revenue had fallen by at least 25% between one quarter of 2019 and the same quarter of 2020.

In a statement, the SBA said it followed the law. But the law directed the SBA to examine revenue, not assets. Musicians with huge bank accounts and multiple mansions were still eligible for the awards as long as their loan-out company's revenue had declined.

Thousands of pages of accounting documents reviewed by Business Insider reveal, for the first time, how some wealthy musicians — including Chris Brown, the DJ Marshmello, and members of Alice in Chains — spent grants they received through the program.

The documents include detailed records explaining how celebrity musicians spent their grants, as well as correspondence between their accountants and the SBA. Business Insider has verified the authenticity of the documents.

They reveal how artists directed millions in taxpayer funds not toward touring crew members, but instead toward their own bank accounts, luxury purchases, and entertainment expenses — often while sitting on substantial wealth from other business ventures.

One top government-accountability expert said some of the spending Business Insider identified was questionable — but stopped short of saying it was fraudulent.

"At a minimum, it smells," said David Walker, a former comptroller general of the United States. "Whether it's legal or not is up to a lawyer or ultimately to a court. But it sure smells."

The SBA said it "implemented industry-leading fraud controls."

Sen. Gary Peters, the chair of the Committee on Homeland Security and Governmental Affairs, said celebrity musicians' use of Shuttered Venue grants was "an abuse of federal resources." Business Insider's findings, he added, demonstrate "the need for continued oversight of pandemic-relief programs."

Pandemic relief was intended to help businesses and workers in need, the senator said — "not super wealthy celebrities."

An $80,000 birthday party

Lil Wayne wasn't the only one to engage in questionable grant spending. Chris Brown spent his grant on a big paycheck — and a big party. Of the $10 million grant Brown's company CBE Touring received, $5.1 million went to Brown personally. He also billed taxpayers nearly $80,000 for his 33rd birthday party.

The blowout, held in a luxe Los Angeles event space, featured a $3,650 LED dance floor and "atmosphere models" — nude women in body paint — who cost $2,100, according to expense reports and a blog post by the party planner. The bill included more than $29,000 for hookahs, bottle service, "nitrogen ice cream," and damages involving burn holes to rented couches.

While the grant was meant to support live entertainment, Brown also charged $24,000 to the grant for the cost of driving his tour bus from the US to Tulum, Mexico, and back in fall 2020 during a monthlong stay for him and his entourage in the resort town, where he did not perform. He spent several days in Tulum filming a video with Jack Harlow for a joint track, but it's not clear if the rest of the trip was for business or pleasure. And more than $179,000 of the grant went toward a celebrity basketball tournament broadcast on YouTube, including a $20,000 payment to the Indianapolis Colts tight end Mo Alie-Cox, who played on Brown's basketball team.

Brown, his attorneys, and managers did not respond to requests for comment. Representatives for Harlow and Alie-Cox also didn't respond to requests for comment.

Others also paid themselves, taking advantage of an SVOG spending category that Business Insider drew attention to last year: "owner compensation."

The SBA's guidance said artists could use grants paid to their loan-out company to pay themselves as long as the check was no bigger than it was in 2019.

Marshmello, whose real name is Christopher Comstock, received a $9.9 million grant. More than a year later, when the SBA asked for proof of where it went, his business manager Steven Macauley, of NKSFB, responded by saying all the money went into Comstock's pocket.

"Because the beneficiary received 2019 Officer Draws/Salary from 365 Touring International, Inc. in excess of the SVOG Grant Award, we therefore, expensed the entire Grant balance to Payroll," Macauley wrote in an April 2023 letter seen by Business Insider.

In other words, because Comstock made more than $9.9 million from touring in 2019, he was able to award himself the entire grant. In doing so, Comstock paid himself more than any other musician who received grant money.

Comstock's publicists and his manager didn't reply to requests for comment, nor did Macauley.

Artists often paid themselves far more than they paid anyone else involved in putting on their live shows.

Steve Aoki's loan-out company, DJ Kid Millionaire Touring, used $2.4 million in grant money on payroll costs, of which $1.9 million was officer pay. Aoki is the company's only officer. Aoki's publicists didn't respond to requests for comment.

Three of the four members of the rock band Shinedown split at least $2.5 million of their $8.3 million grant. On top of those distributions, Shinedown's four members paid themselves more than $100,000 each out of the roughly $1.2 million of the grant that was allocated to payroll.

The band's 15 touring-production workers, meanwhile, received a combined $650,000 of the grant money — less than a single member of the band got. Publicists for the band didn't respond to requests for comment.

Records seen by BI show that a good chunk of the $7.7 million grant to Sremm Touring, the loan-out company for the hip-hop duo Rae Sremmurd, was paid to the rappers Slim Jxmmi and Swae Lee, whose real names are Aaquil Brown and Khalif Brown. The duo's manager, lawyer, and publicists didn't respond to requests for comment.

On March 23, 2022, records show, the Alice in Chains singer and guitarist Jerry Cantrell took in $1.4 million as an "SVOG distribution." The band's drummer, Sean Kinney, received the same amount, and its bassist, Mike Inez, booked half that sum, about $682,000.

In all, $3.4 million of the $4.1 million the grant allotted for payroll went to the three musicians at the top.

Like other grant applicants, AIC Entertainment — the three band members' touring business — had to tell the government only that the money was "necessary." But the month before they took their grant payments, the band members recorded about $48 million in income from selling the copyrights on their catalog. They made hundreds of thousands of dollars more from merchandise sales and other profit distributions in 2022.

The band spent some money to pay its staff. It paid hundreds of thousands of dollars to sound-equipment-rental firms, videographers, and managers. But the precarious nature of working in the live-entertainment business didn't change for some of its employees. Scott Dachroeden, a guitar tech and tour photographer who had worked with the band for years, received a cancer diagnosis in late 2022. The band, which records show did not spend grant money on benefits like health insurance, circulated a GoFundMe page on Twitter.

"He has no health insurance and now cannot work to pay his bills," the page said. The band's lead singer said on Facebook that Alice in Chains helped out behind the scenes, but a person familiar with the situation said that Dachroeden didn't get much, if any, money from the band during the pandemic and that after his diagnosis, the band connected Dachroeden with a charity that helps with medical bills. Dachroeden died soon after his diagnosis.

Alice in Chain's publicists and manager didn't respond to requests for comment.

Supporting 'middle-class people'

The Shuttered Venue Operators Grant program was pitched to Americans as a way to ensure that arts groups would still exist after the pandemic.

In an interview with James Corden on "The Late Late Show," Chuck Schumer cast it as a way to protect "middle-class people" and "young artists" while pandemic restrictions forced closures.

Grant money would "keep these folks going" so that "these live venues will be out there bigger and better than ever" after the restrictions lift, Schumer said. Schumer's press office and chief of staff didn't respond to comment requests.

Chuck Schumer accepts a Grammy on the Hill
In 2023, Sen. Chuck Schumer received a Grammy on the Hill for his work on the Shuttered Venue Operators Grant. "I believe in the power of the music industry," he said at the awards event. "I will always, always fight, tooth and nail, Brooklyn style, for you."

Paul Morigi/Getty Images

Ultimately, more than 13,000 arts groups received grants, including some who say they wouldn't still exist otherwise.

"When the shutdowns happened, it was existential. Immediate crisis," said Brandy Hotchner, the founder of Arizona Actors Academy, an acting school in Phoenix. The grant of less than $120,000 the group received, she said, "utterly saved us."

Musicians weren't explicitly categorized as eligible — and initially, the SBA interpreted the law to mean that artists' loan-out companies couldn't qualify for the grant either.

By mid-December 2021, for reasons BI was unable to determine, the agency had reversed that decision, according to an internal memo seen by Business Insider, which cleared the way for federal funding to flow to wealthy artists. The SBA didn't respond to a question about why it reversed itself.

The business-management firm NKSFB also made millions from the program.

Partners at the firm initially believed that their celebrity clients didn't qualify for the grants. At least one partner feared that applying could be perjury, and another, Rob Salzman, thought the whole thing was "bullshit," a court document said.

Later, in an interview with Billboard magazine as part of its list of "Top Business Managers," Salzman said that applying for the grants was an example of the firm's "outside-the-box" thinking.

The change of heart led to a big payday. Court documents show the firm made at least $7.5 million in fees on the grants. Salzman didn't respond to requests for comment.

"NKSFB, one of the most respected business management firms in the world, does not comment on its clients' financial information," said Freedman, the firm's lawyer. "Based on the uninformed questions that BI has asked, it is clear it has little to no understanding on this subject."

Other white-collar professionals also outearned techs and roadies. Lawyers at the celebrity-favorite firms Greenberg Traurig and Grubman Shire Meiselas & Sacks received up to 5% of their clients' grants. Brown's manager took 7% of his grant, and Shinedown's managers received 20% of theirs. A spokesperson for Greenberg Traurig didn't answer questions about the firm's actions. Partners at Grubman Shire didn't respond to emails or phone calls.

Over $2.1 million of Lil Wayne's grant paid off a debt to a former manager, Cortez Bryant. Another $300,000 went to a former accountant, and his manager at the time, Mack Maine, whose real name is Jermaine Preyan, took $1.7 million. All told, roughly $5.3 million went to managers, accountants, and attorneys as fees and commissions — more than 13 times the amount Lil Wayne paid the drummer, sound techs, and other contractors who helped put on his live shows.

Bryant and Preyan didn't respond to requests for comment.

Lil Wayne performing
Lil Wayne used federal funds to buy clothes for himself and several of his associates to wear at a music festival promoting his marijuana brand, GKUA. Business Insider reported in March that the SBA didn't question his claim that he ran a drug-free workplace, even though he often smokes weed onstage.

Rich Fury/Getty Images

A music-industry insider who learned from Business Insider about NKSFB's wave of grant applications said he was stunned the Small Business Administration approved them.

"It never crossed my mind that we should be trying to get this money for my artists," said the insider, an artist manager who was involved in lobbying lawmakers to pass the legislation and who asked not to be named because of the issue's sensitivity.

"I was in countless conversations," he said. "No one ever discussed artists collecting this money. It never came up."

Hotchner, the acting-school founder, said she was "speechless" upon learning about Business Insider's reporting on how celebrity musicians spent their grants. Though the amount of money sent to pop stars is small relative to the overall amount of money disbursed through the grant program, she said she worried it would taint the public's perception of government support for the arts — support that's still needed.

"I will never forget how hard-fought-for this funding was," she said. "It's such a disappointment."

'Shut up, sit down. Process the file.'

Soon after Congress created the program, lawmakers began pressing the Small Business Administration to get money out the door. By mid-June 2021, more than 200 members of Congress had signed two separate letters demanding the agency disburse the funds expeditiously, saying arts organizations could go out of business without immediate relief.

The SBA said congressional pressure "was not the driving factor" behind changes that sped up the grant process and merely "coincided" with changes it was already making.

The agency hoped to balance a quick release of funds with a desire to protect against large-scale fraud that had plagued other pandemic programs. Its compromise was to relax some anti-fraud controls on the front end of the grant process, a report from the SBA's inspector general said. Instead, it planned to verify whether the grantees were actually eligible and how the money was spent after distributing the grants. In its response to the inspector general's report, the agency said it disagreed with the conclusion that changes to how it evaluated applications amounted to "weakened" fraud controls.

The approach had mixed results. The Government Accountability Office said that it submitted three phony applications to the program and that all three were rejected. But some of the eight current and former SBA workers who spoke to Business Insider said they felt the agency was too permissive and ignored or misinterpreted relevant rules — for example, allowing grantees to spend federal funds on thousands of dollars' worth of alcohol.

"They were just trying to get money out. If it was fraudulent, if it was not eligible — whatever," a person who worked on the grants said. They asked not to be named because they feared retaliation, but their identity is known to Business Insider.

The SBA's inspector general criticized the agency's decision to spot problems after the recipients already spent the money, saying it "does not provide sufficient fraud prevention and comes at a point when funds are potentially unrecoverable." Some SBA employees said that as the program began to wind down, they were pressured to certify recipients' compliance with program rules rather than dig through detailed records of their spending.

The SBA said in September it had recouped $43 million worth of the grants — an amount that hadn't increased since July. It's not clear how the agency recovered that money. While the SBA has a team to recover wrongfully awarded grants, an organizational chart suggests that as of late September it hadn't assigned any staff to it. Documents obtained in a public-records request said $6 billion worth of grants remain under review for compliance with program rules.

The SBA said "some" of the grants Business Insider mentioned in its reporting "remain open due to ongoing third-party audits that the Agency is resolving." The agency spokesperson didn't respond to questions about recoupment and didn't respond to a follow-up question asking which grants remain unresolved.

Four people who worked on the program said they tried to raise concerns about grantees' eligibility and spending to supervisors, to no avail. "I was never so disappointed in my fellow man than in that program," one of the people said. "The graft was unbelievable."

Two of those people said they were frustrated the agency wasn't doing more to investigate possible misspending and recover funds.

"Everybody kept saying shut up, sit down. Process the file," said a current SBA employee who asked not to be named because they're not authorized to speak to the press.

This person said that while some issues stemmed from the dwindling number of SVOG employees drowning in documentation, other problems arose because of the way the program was administered. "It was our fault because we threw this thing together in five seconds," they said.

An SBA spokesperson defended its processes. "By design, the vast majority of processing staff did not have access to the complete results of fraud checks and, therefore, are not positioned to comment on the internal review process or its outcomes," the spokesperson said in an email.

"Where credible evidence suggests funds were misspent or a grantee misrepresented their expenditures to SBA, the agency's robust fraud and waste oversight structure reviewed such allegations," the spokesperson said. "When substantiated, SBA and its law enforcement partners vigorously prosecute suspected wrongdoing. As a matter of policy, the SBA cannot comment on specific investigations or law enforcement action, whether planned or ongoing."

Meanwhile, the government has recovered at least some money from one musician.

As pandemic restrictions faded, Chris Brown returned to performing. In early 2022, he announced a 27-stop nationwide tour and launched a variety of side projects, including a novelty cereal called Breezy's Cosmic Crunch and an NFT collection.

While the Small Business Administration was disbursing money to Brown's touring company, federal and state tax authorities were becoming very interested in his finances.

In early 2021, the IRS notified Brown that he owed $3.2 million in unpaid taxes. In 2022, the IRS determined that Brown owed an additional $2.2 million, while California's Franchise Tax Board found that Brown hadn't paid $1.3 million in state taxes.

He settled these debts in April last year — but not before American taxpayers had unwittingly paid $80,000 for his birthday party.

Have a tip? Know more? Reach Jack Newsham via email ([email protected]) or via Signal (+1-314-971-1627). Do not use a work device.

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Massad Boulos, hailed as a billionaire lawyer advising Trump on Middle East policy, probably isn't a lawyer or a billionaire

Michael Boulos in New York City.
Michael Boulos worked to boost Donald Trump in Michigan ahead of the general election.

Jeenah Moon for The Washington Post via Getty Images

  • Massad Boulos helped Trump win Arab voters in Michigan. He's also Tiffany Trump's father-in-law.
  • News outlets have called him a "billionaire" and repeated Trump's description of him as a "lawyer."
  • But he doesn't appear to have a law license, and his company has a market cap of $865,000.

Massad Boulos, who has been widely described as a billionaire and a lawyer and was recently named as one of Donald Trump's advisors on Middle East affairs, appears to be neither a billionaire nor a licensed attorney, according to public records and interviews.

Boulos first entered the public eye in 2018, when his son Michael met Tiffany Trump at a club in Greece and the pair began dating. The couple married at Mar-A-Lago in 2022, making Massad Boulos Tiffany's father-in-law. He was credited in news stories with playing a key role in Donald Trump's 2024 electoral victory, helping peel Arab American voters away from Democrats in battlegrounds like Michigan.

Earlier this month, Trump said Boulos would be a "senior advisor" on Middle Eastern affairs, joining a team that includes Trump's longtime friend and supporter Steven Witkoff, his pick for ambassador to Israel Mike Huckabee, and Marco Rubio, his nominee for secretary of state, who will shape US policy in the region. At the time, Trump described Boulos as an "accomplished lawyer" and a "highly respected leader in the business world."

But Trump apparently inflated Boulos's résumé. Business Insider found no proof of Boulos's supposed billions. And while he may have attended law school, he hasn't passed a bar exam and can't practice law.

No connection to a company that shares his last name — but he does control a truck dealership worth less than $1 million in Nigeria

Claims of the Boulos family's wealth first started circulating in English-language media in 2018, when Tiffany Trump's relationship with Michael Boulos became public. The New York Post said his family "owns a multibillion-dollar conglomerate" and later mentioned Boulos Enterprises. Vanity Fair echoed the description of the Boulos businesses as "worth billions," a description that was picked up by the Times.

On December 2, the New York Times said Massad Boulos built "his wealth in West Africa" and runs two companies, SCOA Nigeria and Boulos Enterprises. The Financial Times called him an "auto tycoon" who leads both companies, while ABC called him a "billionaire businessman" who "runs Boulos Enterprises."

But Massad Boulos doesn't run Boulos Enterprises, according to several former employees and its actual boss, Boulos Boulos. Boulos Enterprises is part of the Boulos Group, a holding company owned by a different group of Lebanese Nigerians with the same last name.

A due-diligence report for Boulos Enterprises Ltd. created by Moody's Orbis database doesn't mention Massad Boulos. Archived copies of the Boulos Group website from 2016 and 2018 didn't mention him, either. And Elephant Africa Holding, a Mauritius company created by the Boulos Group to hold its paper businesses, also doesn't mention Massad in its corporate filings.

On Thursday, the Times called Boulos's wealth and backstory into question and said he previously misled one of its reporters by answering "yeah" when asked if it was accurate to call his company a multi-billion dollar business.

Beyond headlines in news outlets, BI couldn't find any evidence to suggest Massad Boulos is a billionaire. The company Massad Boulos actually does run, SCOA Nigeria, which has a subsidiary called SCOA Motors, is a penny stock. Its shares trade for about two Nigerian naira, roughly a tenth of a US cent, making the entire business worth about $865,000. That's not Billionaire's Row money, but it could buy you a 957-square-foot condo in Queens.

The company's latest annual report, which is partly printed in Comic Sans, is consistent with such a valuation. For its financial year ending September 30, SCOA reported about 5.9 billion naira, or $3.7 million, in revenue and about 25 million naira, or $15,562, in post-tax profits. The year before, when sales were weaker, SCOA lost about 715 million naira, or $444,000.

In interviews with the New York Times, Boulos has said he didn't correct the record because he doesn't discuss his businesses. He also said it was hard to value his family's businesses.

It's possible that Massad Boulos's family could have other sources of wealth. His wife, Sarah Fadoul Boulos, is the daughter of another Lebanese businessman in Africa, Michel Zouhair Fadoul, whose company boasts of a presence in "more than 10 countries" and has been listed among the most successful Lebanese businesses in Africa.

On social media, Massad and his family seem to live large, posting content from a yacht floating off the southern coast of France and a ski run in the Alps. While Massad Boulos has virtually no history of political giving, his son Michael made $200,000 in political contributions in two days in 2020. Michael was also reported to have proposed to Tiffany with a $1.2 million ring — which he "upgraded" to an even pricier piece by their wedding day.

Phone numbers listed for Massad Boulos and his wife were disconnected. Efforts to reach him through family members and political associates weren't successful. The Trump transition team did not respond to a request for comment.

'Is not now, and never has been, an attorney licensed to practice law'

It's also not clear that Massad Boulos is a "lawyer," as Donald Trump has described him.

Some news outlets say that Boulos has a law degree from the University of Houston. But a spokesman for the University of Houston system said that's not correct; Boulos has a bachelor's degree in "general business" from one of its smaller schools, the University of Houston-Downtown.

In a 2015 interview on Nigerian TV, Sarah Boulos said her husband "graduated as a lawyer from Thurgood Marshall School," part of Texas Southern University, before they moved to Nigeria. Massad Boulos also listed a law degree from the school on his LinkedIn profile before the profile went offline, according to information saved in the contact database Rocketreach.

Texas Southern officials didn't respond to several requests for comment on Wednesday and Thursday.

But graduating from law school doesn't make someone a lawyer. Nahdiah Hoang, the executive director of the Texas Board of Law Examiners, said in an email that Boulos applied to take the July 1996 bar exam, but he either didn't take it or didn't pass.

A spokeswoman for the Texas Bar said Boulos "is not now, and never has been, an attorney licensed to practice law in Texas."

BI also checked bar records for DC and 47 other states — covering 99% of the US population — and found Boulos wasn't registered as a lawyer in any of those states, either. (BI was unable to confirm if Boulos was registered to practice law in Alaska or South Dakota.)

L'Orient Le Jour, a Lebanese newspaper, reported that Boulos is also a citizen of Lebanon, Nigeria, and France. There's no public evidence that Boulos is licensed as a lawyer in any of those places.

He was not listed in the directories for the 11 largest French bar associations, which cover two-thirds of French lawyers. Lawyers in Lebanon must be registered with one of two bar associations; one of them, the Beirut Bar Association, said Boulos wasn't in its database, and the other didn't respond to repeated inquiries. The Nigerian Bar Association and the country's Supreme Court, which maintains its registry of lawyers, did not respond to emails about whether Boulos was an attorney.

Narimes Parakul contributed reporting.

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Mike Lindell says 'cash-strapped' MyPillow took $1.6 million loan from payday lender at 409% interest

Mike Lindell
MyPillow CEO Mike Lindell waits outside the West Wing of the White House on January 15, 2021 in Washington, DC.

Drew Angerer/Getty Images

  • MyPillow and Mike Lindell claim in a lawsuit that they were deceived by a corporate payday lender.
  • The lawsuit says "cash-strapped" MyPillow borrowed $1.6 million at a "usurious" interest rate.
  • Lindell has said he's broke. At least three MyPillow loans have ended up in court, records show.

MyPillow owner Mike Lindell said his company was duped into borrowing $1.6 million at a 409% annual interest rate, the latest sign of financial distress for the far-right pillow salesman.

Lindell, MyPillow, and 18 other corporate entities claim Cobalt Funding Solutions and another company involved in the loan, Streamline Advance, engaged in racketeering by extending a high-interest merchant cash advance — essentially a payday loan for businesses.

Cobalt, Streamline, and two men named as defendants "took advantage" of MyPillow, "a cash-strapped business that needed funds quickly," the lawsuit said. The lawsuit claims that the September agreement to borrow nearly $1.6 million was stacked against MyPillow and risked ruining the company.

The lawsuit was first reported by Law.com on December 10.

It's at least the third case filed in recent months involving MyPillow and merchant cash advances. In October, a company called Lifetime Funding said Lindell and his companies defaulted on a $600,000 advance barely a month after borrowing it. About a week later, another company, Shine Capital Group, filed a suit saying they defaulted on a $2 million deal signed in July.

Both cases are pending in New York. MyPillow has sought dismissal of the Lifetime case by arguing that the deal's interest rate was so high that it violated state law.

MyPillow and Lindell have been struggling for years. They borrowed $10 million in 2022 and were dumped by lawyers after they couldn't pay their legal bills. Earlier this year, Lindell told NBC News that he didn't have any money and was down to his house and his truck.

The use of merchant cash advances, typically used by struggling businesses with no other options, is a sign that the situation has worsened.

Lindell has also been sued several times related to his political claims. He has insisted for years that the 2020 election was stolen from Donald Trump, and owes more than $5 million to a man who won his "Prove Mike Wrong" contest by showing that his supposed evidence that the election was stolen didn't actually prove anything.

Lindell, Streamline, and Cobalt didn't immediately respond to requests for comment.

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Luigi Mangione's deleted social media posts show support for Robert F. Kennedy Jr., skepticism of doctors

Luigi Mangione is seen in a holding cell after being taken into custody on December 9, 2024 in Altoona, Pennsylvania
Luigi Mangione is seen in a holding cell after being taken into custody on December 9, 2024 in Altoona, Pennsylvania

Altoona Police Department via Getty Images

  • Luigi Mangione, a 26-year-old tech worker, was charged with the killing of UnitedHealthcare CEO Brian Thompson.
  • The University of Pennsylvania graduate reportedly stopped speaking with friends and family after back surgery last year.
  • Deleted social media posts show skepticism toward doctors, Donald Trump, and Joe Biden, and support for RFK Jr.

Luigi Mangione, the man charged with the murder of UnitedHealthcare CEO Brian Thompson, seemingly supported Robert F. Kennedy Jr., appeared to harbor frustrations with the medical field, and expressed skepticism toward both Donald Trump and Joe Biden, deleted posts on X show.

Mangione, a 26-year-old software developer who reportedly fell out of touch with friends and family after back surgery last year, reposted Edward Snowden's suggestion that Democrats should nominate Robert F. Kennedy Jr. for president following Joe Biden's disastrous debate performance in June.

darkly amusing to watch panicked dems suddenly searching under the couch cushions for a candidate when kennedy is literally standing right there

— Edward Snowden (@Snowden) July 4, 2024

The deleted posts, which Business Insider viewed on Archive.org, are among the most recent online clues about Mangione found so far.

Mangione has been described as both an "anti-capitalist" and a member of the "online right." His deleted posts support the idea that his worldview was influenced by reactionary right-wing thinkers.

In another deleted post from May, Mangione reposted another user's skepticism of doctors, adding detail to reports about Mangione's dissatisfaction with the US healthcare system. A former roommate from Hawaii told the Honolulu Civil Beat that Mangione had chronic back pain.

"My experience with the medical profession — and yours is probably similar — is that doctors are basically worthless unless you carefully manage them, and 2/3 of them are worthless even in that case," the post said.

The author of the original post, Zero HP Lovecraft, calls himself a "fascist hipster." His Substack shows he submitted a short story for the Passage Prize, an award run by a publisher known for publishing reactionary and fascist authors.

Mangione also castigated "both parties" in a reply to writer Nate Silver.

"Both parties - Trump with his refusal to accept the results of an election, and Biden with his refusal to accept his age and step down - are simultaneously proving how desperately individuals will cling to power," Mangione posted. He also referred to term limits as "critical."

In June, he reposted a suggestion by Richard Hanania, an author critical of "wokeness," that Trump thought Christians were delusional.

Trump clearly sees Christians the way most adults see kids who still believe in Santa Clause. pic.twitter.com/qZMvbR3yK7

— Richard Hanania (@RichardHanania) June 5, 2024

In July, Mangione also reposted a description of Project 2025, a roadmap for Trump's second term developed by the right-wing think tank The Heritage Foundation, as "qanon but for redditors."

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What we know about Luigi Mangione, the Ivy League grad charged with murder in UnitedHealthcare CEO's killing

A yearbook entry for Luigi Mangione, with a list of achievements, a personal statement from Mangione thanking friends and family, and a collection of photos of him with friends and family.
Luigi Mangioni's entry in the Gilman School class of 2016 yearbook.

Anonymous

  • Luigi Mangione has been charged with murder in UnitedHealthcare CEO Brian Thompson's killing.
  • Mangione, an Ivy League graduate from a wealthy family, left an online trail before his arrest.
  • He founded an app, talked about AI on X, and read the Unabomber Manifesto.

Luigi Mangione, the 26-year-old Ivy League graduate charged with murder in the fatal shooting of UnitedHealthcare CEO Brian Thompson, has a vast online trail.

Police arrested Mangione in Pennsylvania on December 9. He initially faced local gun and forgery charges. He's expected to be extradited to New York.

New York court documents show that in addition to one count of murder, he also faces two counts of second-degree criminal possession of a weapon, one count of second-degree possession of a forged document, and one count of third-degree criminal possession of a firearm.

Here's what to know about Mangione.

Mangione attended elite schools

Mangione graduated from the University of Pennsylvania in 2020.

He achieved a Bachelor of Science in engineering with a major in computer science and a minor in mathematics. He also received a Master of Science in engineering the same year with a major in computer and information science, a university spokesperson told Business Insider.

Before that, he attended Gilman School, an elite all-boys preparatory school in Baltimore. His yearbook entry, obtained by BI, says he was involved in robotics and Model United Nations.

In his valedictorian speech, Mangione praised classmates for "challenging the world" and thanked parents for sending their children to the fee-paying school, which he described as "far from a small financial investment."

He favorably reviewed the Unabomber Manifesto

On Goodreads, Mangione reviewed Ted Kaczynski's "Industrial Society and Its Future" book, also known as The Unabomber Manifesto, in early 2024. He gave it four out of five stars.

"He was a violent individual — rightfully imprisoned — who maimed innocent people," Mangione wrote. "While these actions tend to be characterized as those of a crazy luddite, however, they are more accurately seen as those of an extreme political revolutionary."

Mangione's review of the manifesto also quoted another online comment about the book, which appears to have originated on Reddit, praising the use of violence "when all other forms of communication fail."

"'Violence never solved anything' is a statement uttered by cowards and predators,'" Mangione quoted.

He founded an app and worked in tech

In 2015, while in high school, Mangione founded a company called AppRoar Studios. AppRoar released an iPhone game called "Pivot Plane" that's no longer available, but a reviewer in 2015 said it was "a fun little arcade game brought to you by 3 high school juniors."

He lived in a co-living space in Hawaii as recently as 2023.

He posed for photos indicating he participated in Greek life at the University of Pennsylvania.

The fraternity chapter represented in his photos couldn't be reached for comment.

A blog post on the University of Pennsylvania's website that was removed on December 9 said he cofounded a video game design club there.

Stephen Lane, a professor of video game design at the Ivy League university who didn't advise the club, told BI that "the fact he took the initiative and started something from nothing, that means at least in the context of Penn, that's a pretty good thing." He added, however, that Thompson's shooting was "obviously not a good thing."

Mangione's LinkedIn page says he worked as a data engineer at the vehicle shopping company TrueCar starting in 2020.

A TrueCar spokesperson told BI that Mangione hadn't worked for the company since 2023.

Online breadcrumbs and roommate say he dealt with back pain

At the top of Mangione's profile on X — formerly Twitter — is a triptych of three images: a photo of himself, smiling, shirtless on a mountain ridge; a Pokémon; and an X-ray with four pins or screws visible in the lower back.

The Pokémon featured in his cover image is Breloom, which has special healing abilities in the games.

Some of the books reviewed on Mangione's Goodreads account are related to health and healing back pain, including "Back Mechanic: The Secrets to a Healthy Spine Your Doctor Isn't Telling You" and "Crooked: Outwitting the Back Pain Industry and Getting on the Road to Recovery."

R.J. Martin, the founder of the co-living space in Hawaii, told the Honolulu Civil Beat that Mangione had suffered back pain from a misaligned vertebra that was pinching his spinal cord.

Martin told CNN that after leaving Hawaii, Mangione texted him to say he'd undergone surgery and sent him X-rays.

"It looked heinous, with just, giant screws going into his spine," Martin told the outlet.

It's not immediately clear whether the surgery was related to UnitedHealthcare.

Josiah Ryan, a spokesperson for the co-living space founder, told The Wall Street Journal that Mangione stopped replying to texts about six months ago and "sort of disappeared."

A YouTube spokesperson said that the platform had terminated Mangione's three accounts, adding that they had not been active for about seven months.

A senior police official told NBC New York on December 12 that Magione was never a UnitedHealthcare client and may have targeted Thompson because of the insurer's large size and outsize power. That same day, The Wall Street Journal reported that a company spokesperson said Magione was not a client.

Mangione was interested in AI

On his X account, Mangione posted and amplified posts about technological advances such as artificial intelligence. He also posted about fitness and healthy living.

He frequently reposted posts by the writer Tim Urban and the commentator Jonathan Haidt about the promise and perils of technology.

He also appeared to be a fan of Michael Pollan, known for his writing about food, ethics, and lab-grown meat.

On Goodreads, he praised Urban's book "What's Our Problem?: A Self-Help Book for Societies," describing it as "one of the most important philosophical texts of the early 21st century."

Urban posted to X on December 9: "Very much not the point of the book."

He was previously accused of trespassing

Before his arrest, Mangione had at least one encounter with the legal system. Hawaiian court records indicate that in 2023, he was accused of entering a forbidden area of a state park.

Mangione appears to have paid a $100 fine to resolve the matter.

Mangione comes from a wealthy and influential Baltimore family

Mangione is one of 37 grandchildren of the late Nick Mangione Sr., a prominent multimillionaire real-estate developer in Baltimore who died in 2008, The Baltimore Banner reported. Nick Mangione Sr. had 10 children, including Louis Mangione, Luigi Mangione's father.

Members of the Mangione family own the Turf Valley Resort in Ellicott City, Maryland, and Hayfields Country Club in Hunt Valley, Maryland.

One of Luigi Mangione's cousins is the Republican Maryland state legislator Nino Mangione, the Associated Press reported.

Representatives for Nino Mangione's office, in a statement to BI, declined to comment on the news of Luigi Mangione's arrest.

"Unfortunately, we cannot comment on news reports regarding Luigi Mangione," the statement read. "We only know what we have read in the media. Our family is shocked and devastated by Luigi's arrest. We offer our prayers to the family of Brian Thompson and we ask people to pray for all involved. We are devastated by this news."

The Mangione family has donated more than $1 million to the Greater Baltimore Medical Center, where all of Nick Mangione Sr.'s grandkids, including Luigi Mangione, were born, the Banner reported.

A public filing from 2022 for the nonprofit Mangione Family Foundation lists Louis Mangione as vice president.

He was arrested while on his laptop at a McDonald's, the police said

When the police in Altoona, Pennsylvania, responded to a McDonald's after a call about a suspicious person, they found Mangione sitting at a table looking at a silver laptop and wearing a blue medical mask, a criminal complaint said.

The complaint said that when asked for identification, Mangione gave police officers a New Jersey driver's license with the name "Mark Rosario."

When an officer asked Mangione whether he'd been to New York recently, he "became quiet and started to shake," the complaint said.

It added that Mangione correctly identified himself after officers told him he could be arrested for lying about his identity.

When asked why he lied, Mangione replied, "I clearly shouldn't have," the complaint said.

His motive is still not known, but police are analyzing his so-called manifesto

An internal NYPD report obtained by The New York Times said Mangione "likely views himself as a hero of sorts who has finally decided to act upon such injustices."

Mangione "appeared to view the targeted killing of the company's highest-ranking representative as a symbolic takedown and a direct challenge to its alleged corruption and 'power games,' asserting in his note he is the 'first to face it with such brutal honesty,'" according to the NYPD report by the department's Intelligence and Counterterrorism Bureau, the Times reported.

Moments before the December 10 extradition hearing began, Mangione, handcuffed and wearing an orange prison jumpsuit, shouted out to the press as Pennsylvania police escorted him into the courthouse.

Mangione yelled out something partially unintelligible, saying something was "completely out of touch" and "an insult to the American people." He also shouted that something was a "lived experience" as a group of officers led him into the courthouse.

NYPD Chief of Detectives Joseph Kenny told NBC New York that Mangione had prior knowledge that UnitedHealthcare would be having its annual conference in New York City.

Mangione has retained a high-profile New York attorney

Thomas Dickey emerged as Mangione's attorney in Pennsylvania after his arrest in Altoona on December 9.

During a December 10 hearing at Pennsylvania's Blair County Courthouse, Dickey told the judge that Mangione was contesting his extradition to New York City.

Dickey later told reporters that Mangione would plead not guilty to all the charges in Pennsylvania. During an interview with CNN, Dickey said he expected Mangione to plead not guilty to the second-degree murder charge in New York and that he hadn't seen evidence that authorities "have the right guy."

Karen Friedman Agnifilo will represent Mangione in New York, a representative for Agnifilo Intrater LLP confirmed to Business Insider on Sunday.

Friedman Agnifilo worked as the chief assistant district attorney at the Manhattan District Attorney's Office from 2014 to 2021. She pivoted to private practice in 2021.

Do you know Luigi Mangione? Have a tip? Reach out to [email protected].

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Luigi Mangione update: Suspect in UHC CEO shooting hires noted NY lawyer who's married to Diddy's attorney

Luigi Mangione
Luigi Mangione is led into a police car after his arrest for the murder of UnitedHealthcare CEO Brian Thompson.

Jeff Swensen/Getty Images

  • UnitedHealthcare CEO Brian Thompson was fatally shot outside a Manhattan hotel on December 4.
  • Police arrested Luigi Mangione, who now faces a murder charge for the killing.
  • Mangione has hired prominent New York lawyer Karen Friedman Agnifilo to defend him.

Luigi Mangione, the man police say murdered UnitedHealthcare CEO Brian Thompson, has hired high-profile attorney Karen Friedman Agnifilo.

Friedman Agnifilo is married to Marc Agnifilo, lead lawyer defending Sean "Diddy" Combs against federal sex-trafficking charges.

The Combs and Mangione cases will be handled by the same Manhattan law firm, Agnifilo Intrater LLP, and can be expected to dominate legal news headlines in the coming year.

In getting retained, Friedman Agnifilo bested some half-dozen other prominent attorneys who had been interviewed by the Mangione family last week, according to multiple sources who asked not to be named due to their connection with the case.

Friedman Agnifilo last week left her previous law firm, Perry Law, to join her husband's firm as counsel, representatives for both firms told Business Insider.

Friedman Agnifilo had been a CNN commentator as recently as Wednesday, when she suggested that an insanity defense would be Mangione's best bet.

She told journalist Kaitlan Collins, "It looks like to me there might be a 'not guilty by reason of insanity' defense that they're going to be thinking about because the evidence is going to be so overwhelming that he did what he did."

On Friday night, Collins broke the news that Friedman Agnifilo had been hired by the Mangione family.

Friedman Agnifilo worked as the chief assistant district attorney at the Manhattan District Attorney's Office for seven years before pivoting to private practice in 2021.

Mangione faces a second-degree murder charge in New York for the fatal December 4 shooting of Thompson, a 50-year-old father of two from Minnesota. That charge carries a maximum sentence of life in prison.

(A charge of first-degree murder is reserved for those accused of killing a law enforcement official or witness of a crime, or for when a murder is committed during the commission of another high-level crime, including robbery, rape, or kidnapping.)

Mangione is fighting extradition to New York City. The 26-year-old Ivy League graduate appeared for a hearing on December 10 at Pennsylvania's Blair County Courthouse, where a lawyer, Thomas Dickey, told the judge that Mangione was contesting his extradition. Police arrested Mangione in Altoona, Pennsylvania, on December 9 on local charges and later arraigned. Mangione made a bail request, which the judge denied during the hearing.

The suspect will remain at Pennsylvania's Huntingdon State Correctional Institution during the extradition proceedings. Dickey told reporters on December 10 that Mangione would plead not guilty to all the charges in Pennsylvania.

In an interview with CNN that evening, Dickey also said that he anticipates Mangione would plead not guilty to the murder charge in New York and that he hadn't seen any evidence that officials in New York "have the right guy."

Mangione also faces four other charges related to the killing of the insurance CEO: two counts of criminal possession of a weapon in the second-degree, one count of second-degree criminal possession of a forged instrument, and one count of criminal possession of a weapon in the third-degree.

A gun found on Mangione matched the three shell casings found at the site of the shooting, New York Police Department Commissioner Jessica Tisch said during a December 11 press conference.

Tisch added that the suspect's fingerprints also matched those found on a water bottle and snack bar wrapper discarded near the crime scene.

During Mangione's arrest, officers found a three-page handwritten document "that speaks to both his motivation and mindset," Tisch said at a separate press conference on December 9.

An internal NYPD report obtained by The New York Times gave the clearest view of the potential motive yet. Based on the so-called manifesto discovered, Mangione "likely views himself as a hero of sorts who has finally decided to act upon such injustices," the NYPD report said, as reported by the Times.

Mangione "appeared to view the targeted killing of the company's highest-ranking representative as a symbolic takedown and a direct challenge to its alleged corruption and 'power games,' asserting in his note he is the 'first to face it with such brutal honesty,'" according to the NYPD report by the department's Intelligence and Counterterrorism Bureau, the Times reported.

In a statement to Business Insider, representatives for Nino Mangione — a Maryland state legislator and a cousin of Mangione's — declined to comment on the news of Mangione's arrest.

"Unfortunately, we cannot comment on news reports regarding Luigi Mangione," the statement read. "We only know what we have read in the media. Our family is shocked and devastated by Luigi's arrest."

Recognized at a McDonald's

Mangione was eating in an Altoona McDonald's when an employee recognized him from the several surveillance images that authorities released in the aftermath of Thompson's killing and called the police, New York police said at the December 9 press conference.

Altoona police found Mangione in the McDonald's with multiple fake IDs and a US passport, as well as a firearm and a suppressor "both consistent with the weapon used" in the shooting of Thompson in the heart of Manhattan, Tisch, the NYPD commissioner, said.

The gun appeared to be a "ghost gun" that may have been made on a 3-D printer. NYPD Chief of Detectives Joseph Kenny said at the press conference that such a gun could fire a 9-millimeter round.

A Pennsylvania criminal complaint filed against Mangione said officers found a black 3-D-printed pistol and 3-D-printed silencer inside the suspect's backpack.

When Altoona officers asked Mangione if he had been to New York recently, he "became quiet and started to shake," the criminal complaint said.

Clothing, including a mask, was also recovered "consistent with those worn" by the suspect wanted for Thompson's killing, along with a fake New Jersey ID matching the ID that the murder suspect used to check into a Manhattan hostel before the attack, Tisch said.

Based on the handwritten document that police found on Mangione, according to Kenny, "it does seem that he has some ill will toward corporate America."

During a December 10 interview on NBC's "Today" show, Tisch said the "manifesto" revealed "anti-corporatist sentiment" and "a lot of issues with the healthcare industry."

"But as to like particular, specific motive that'll come out as this investigation continues to unfold over the next weeks and month," the NYPD commissioner said.

NBC News and The New York Times, each citing an unnamed senior law enforcement official, reported that the handwritten document read in part: "These parasites had it coming."

"I do apologize for any strife and trauma, but it had to be done," it added, according to the reports.

Police believe that Mangione acted alone.

NYPD investigators traveled to Altoona last week to interview Mangione after Altoona officers took him into custody.

Blair County District Attorney Peter Weeks said at Mangione's Pennsylvania arraignment that Mangione was carrying $10,000 in cash, including foreign currency, according to the Associated Press.

Mangione disputed the amount in court.

Photo of suspect in Brian Thompson's killing
NYPD released images of the person of interest in Brian Thompson's killing.

DCPI/NYPD

Mangione was active on social media

Mangione posted and amplified posts about technological advances like artificial intelligence on X. He also posted about fitness and healthy living.

He frequently retweeted posts by the writer Tim Urban and commentator Jonathan Haidt about the promise and perils of technology. He also appeared to be a fan of Michael Pollan, known for his writing about food and ethics.

Other deleted social media posts showed support for Robert F. Kennedy Jr. and expressed skepticism toward both President Joe Biden and President-elect Donald Trump.

At the top of his profile was a header image with three images: a photo of himself, smiling, shirtless on a mountain ridge, a Pokemon, and an x-ray with four pins or screws visible in the lower back.

Mangione founded a company called AppRoar Studios in 2015 while still in high school. AppRoar released an iPhone game called Pivot Plane that is no longer available.

The two other cofounders of AppRoar could not be reached for comment.

Mangione's X account has been deactivated. A spokesperson for YouTube said his three accounts on the platform were also terminated, but that they had not been active for about seven months.

A manhunt

Mangione's arrest followed a nearly week-long manhunt.

According to police, Manigone was born and raised in Maryland, and has ties to San Francisco, California. His last known address was in Honolulu, Hawaii.

The New York Post, citing law-enforcement sources, reported that Mangione's mother reported him missing in mid-November.

Law-enforcement sources told ABC News that FBI agents and members of the NYPD spoke to the mother a day before Mangione's arrest, following a tip, and that in the conversation she indicated that the person in the surveillance photos could be her son.

Kenny, the NYPD's chief of detectives, said that Manigone has no prior arrest history in New York and no known arrests in the US.

A Luigi Mangione with a matching birthday and address received a citation for simple trespass for entering a forbidden area of a state park in Hawaii in November 2023. He pleaded no contest and paid a $100 fine.

"For just over five days, our NYPD investigators combed through thousands of hours of video, followed up on hundreds of tips, and processed every bit of forensic evidence — DNA, fingerprints, IP addresses and so much to tighten the net," Tisch said at Monday's press conference announcing the arrest of Manigone.

Thompson was shot multiple times on a Midtown sidewalk as he was walking toward the Hilton hotel. He was steps away from a side entrance to the hotel — where he was set to speak at UnitedHealth Group's investor conference — when a hooded gunman opened fire on him from behind.

The chief executive of the nation's largest health insurer was struck at least once in the back and at least once in the right calf, police said.

Surveillance footage showed the gunman firing his weapon as Thompson, wearing a blue suit jacket, walked several feet in front of him.

Surveillance images of the suspected shooter in the killing of UnitedHealthcare CEO Brian Thompson.
Surveillance images show the suspected shooter in the killing of UnitedHealthcare CEO Brian Thompson.

NYPD via AP

The gunman fled the scene, first on foot and then on an electric bike, which he rode into Central Park before ultimately escaping from New York City, police said.

Shell casings and bullets found at the scene had the words "deny," "defend," and "depose" written on them, according to multiple reports citing unnamed sources. BI couldn't independently confirm these details.

In the aftermath of the attack, the NYPD offered a $10,000 reward for tips leading to the gunman's arrest, with the FBI offering a reward of up to $50,000 for information leading to his arrest and conviction.

A spokesperson for UnitedHealth Group, the parent company of UnitedHealthcare, reacted to news of Manigone's arrest in a statement to BI, saying: "Our hope is that today's apprehension brings some relief to Brian's family, friends, colleagues and the many others affected by this unspeakable tragedy. We thank law enforcement and will continue to work with them on this investigation. We ask that everyone respect the family's privacy as they mourn."

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