About a week and a half ago the Board of Directors at The Source Entertainment Inc moved to have co-founder Dave Mays and fake founder Ray Benzino removed from the company.
After they filing a restraining order against the four board members seeking their dismissal, a New Jersey Judge ruled in favor of the Board on January 18.
With that, the pair is officially fired from the once great hip-hop magazine. According to the Board, “Mays and Scott could not continue their series of financial recklessness and negligence.”
A few years back, The Black Enterprise/Greenwich Street Fund invested $12 million in The Source who was in need of a cash injection.
Black Enterprise received a minority stake and seats on the company’s board of directors in return.
In addition to their investment, they also aided Mays in getting an $18 million loan from Textron Financial which the The Source then defaulted on.
I’m sure this won’t be the last we hear of this, stay tuned…