Hank Risan has been indicted on charges of wire fraud for allegedly misleading investors about his companies, Media Rights Technologies, Inc. and BlueBeat, Inc. The indictment outlines several falsehoods, including claims of owning copyrights to 2.5 million songs and associations with well-known entities. Risan reportedly induced investors to invest nearly $2 million and falsely claimed imminent acquisitions by a media conglomerate. Prosecutors assert he obtained over $3 million in total from the scheme, using funds for personal expenses.
According to the indictment filed on July 31, Risan, 70, allegedly offered and sold stock and stock conversion in his software company, Media Rights Technologies, Inc., and his music streaming service, BlueBeat, Inc., to investors based on false representations, including false claims of BlueBeat's copyright ownership of approximately 2.5 million songs by various well-known artists.
In reality, the indictment alleges, BlueBeat did not own the copyrights to the 2.5 million songs, the valuations of MRT and BlueBeat were fictional, the advertised multi-media conglomerate was not in the process of acquiring BlueBeat or its catalog, and the former Commerce official was not involved with BlueBeat.
#wire-fraud #investment-misrepresentation #intellectual-property #music-streaming #federal-indictment
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