In the world of Teddy Riley, running scams are now being attached to his name.
According to theJasmineBrand, Riley allegedly orchestrated an online scam that took funds away from online investors. He is now facing a lawsuit totaling $1.9 million dollar for fraud and conspiracy.
The Receivables Exchange, an online investment company, claims that Riley extorted money out of them through fraudulent accounts.
According to their website, Receivables Exchange acts as an electronic marketplace for sellers to auction off goods:
Receivables Exchange is the leading electronic exchange for the sale and purchase of accounts receivable. In association with NYSE, RecX connects large corporate sellers of receivables with diversified sources of liquidity, including banks, family offices and asset management funds.
In laymen terms, the company helps to sell off debt that is owed to them. That way, they can assist buyer(s) in collecting on the money owed by the debtor, legally.
The company claims that in 2013, Riley partnered up with RecX so that he could sale receivables that he owed through his company – TR Music.
RecX believes that Riley allegedly scammed them by creating a fake receivables account. That would mean that Riley could collect the monies from the items auctioned off and dispense it to others involved in the alleged fraud scheme directly.
RecX also added in their lawsuit that Riley’s choice caused them a monetary loss of $326,480 dollars. That amount was paid to Riley as an interchange for his alleged fake receivables account. In addition to his decision to cheat the company, Riley also caused a financial disservice to the workmanship of online buyers.
Now this isn’t the first time Riely has faced lawsuits. According to The Urban Daily, Riely’s former Blackstreet band mate (Chauncey Black), filed a lawsuit against the producer over illegally using the “Blackstreet” name. After the trademark had expired, Black took ownership of the name forfeiting Riely’s rights to use it.
Riley’s rep denied to comment on the “ridiculous and frivolous…” claims concerning the hit-making group.
No word yet from Riely’s camp regarding the RecX allegations.
