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Subject: Embezzlement Scandal Hits Songwriters' Guild


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m.i.b.- music news of interest
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Date Posted: 10:00:23 09/04/05 Sun

NEW YORK (Billboard) - A federal criminal investigation is under way after $1.25 million in songwriter royalties allegedly were embezzled from the Songwriters Guild of America by its royalty manager and her family members.

The SGA's special counsel, Charles Sanders, told Billboard that the FBI, the Internal Revenue Service and the U.S. Postal Service are working with the guild to determine the full extent of any criminal activities.

The SGA represents about 5,000 songwriter members and their estates. Members may elect to have the guild collect royalties for them from publishers, collecting societies and others. The SGA collects nearly $16 million in royalties annually and holds about 2 percent of that amount, when it cannot find current addresses for writers.

According to a federal civil lawsuit the SGA filed in July, Marsha Aiken became the guild's royalty manager in 2002 and created a fraudulent membership account under the name Anthony Ray, who the IRS later identified as her cousin. She began writing unauthorized royalty checks to Ray from the SGA's general account -- where the unlocated writers' funds are held -- and mailing them to him in Rhode Island.

A Rhode Island bank complied with federal banking regulations by notifying the IRS when someone attempted to cash an SGA check for more than $10,000, Sanders says. The IRS then contacted the SGA, with Aiken taking charge of the inquiry as royalty and office manager; she stalled the IRS with various excuses, Sanders said. In June the IRS contacted an SGA executive and pointed out that Aiken and the recipient of the check were cousins.

The guild launched an investigation and discharged Aiken. Several specialists are working to implement security improvements and to file insurance claims, Sanders said.

The District Court in Brooklyn, N.Y., issued an injunction August 17 prohibiting Aiken, Ray, Michael Levy, Monique Aiken Adams and anyone "in active concert" with any of them from selling property in St. Albans, N.Y., that the SGA claims was acquired with the funds.

Aiken declined to comment. Ray, Levy and Adams could not be reached.

http://news.yahoo.com/s/nm/20050903/music_nm/scandal_dc


---------------- > missing music man -- >


Fats Domino Is Missing in New Orleans

Fats Domino was missing Thursday, days after Hurricane Katrina devastated New Orleans, said his longtime agent, Al Embry. Embry told The Associated Press that he hadn't been able to contact Domino since talking to him Sunday evening by phone.

Checquoline Davis, Domino's niece, posted a message on Craigslist.com Thursday pleading for information. Davis wrote that Domino, his wife, their children and grandchildren "didn't get out" of the second floor.

Domino, who has rarely appeared in public in recent years, has a home in the 9th ward, a low-lying area of the flooded city.

Getting information on possible missing persons has been nearly impossible as phone lines for hospitals and police haven't been working.

Domino has sold more than 110 million records in his long career, including the legendary singles "Blueberry Hill" and "Ain't That a Shame."

His 1950 recording of "The Fat Man" is sometimes called the first real rock 'n' roll record. He was among the first honorees to the Rock and Roll Hall of Fame.

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