Music producer and artist Teddy RIley is being sued for $1.9. million for conspiracy and fraud. Riley is accused of scamming investors out of hundreds of thousands of dollars.
The Receivables Exchange is an online investment company. Sellers can auction off eligible receivables for sale to investors. The investment company sells off debt owed to them. The debtor owes money and the buyer can collect on that money.
According to the JasmineBRAND.com, Riley agreed to sell receivables back in 2013 through his TR Music Company. The investment company claimed he sold receivables to fake accounts. This money would never be paid by the account debtor TR Music, but he collected the money from the sale.
Riley allegedly created fake accounts thereby cheating buyers out of a total of $326,480. He reportedly, shared the fraudulent money with co-conspirators.