G Herbo’s legal troubles seem to be increasing as he is now alleging that he was duped out of millions by his ex-manager and the record label he was signed to.
On Monday (October 30), AllHipHop published court documents confirming that the Chicago native is suing Joseph “JB” Bowden and Machine Entertainment for financial manipulation, demanding $40million in compensation.
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Herbo (real name Herbert Wright) maintains that he was tricked into “unfair and one-sided deals” when he was a minor, and that he has been in never-ending debt ever since. As a result, he currently owes his former imprint $8.4 million.
“Over the years, when we started generating money, probably this was on the Sony system, [Bowden] pulled me to the side like, ‘Bro, let me run your business for you.’ I wasn’t really business savvy. This was somebody I trust with my life, like my brother, like a father figure. ‘I’m your business for you, bro.’ Alright, so from then on, he’s running my business,” the rapper said during a livestream in which he addressed the dispute.
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Elaborating on the matter, his attorney said: “Because [Wright’s] money was controlled by [Bowden and Machine], [Wright] was forced to ask Bowden to make purchases on his behalf, including for vehicles, [Wright’s] rent, and his mother’s rent. Bowden’s conduct, in depriving [Wright] of his own funds, was designed to prevent [Wright] from leaving Machine or from being able to successfully work with another business manager who would actually look out for [Wright’s] best interests.”
Earlier this year, G Herbo plead guilty to “one count of conspiracy to commit wire fraud and one count of making a false statement to federal officials.” He was subsequently ordered to pay the victims of his $1.5 million fraud scheme $140,000 in restitution during a court appearance in late July.
The charges came down on Herbo and his crew in 2020, followed by an additional charge of lying to the feds that was added in 2021. Regarding the case, he has admitted to participating in a scheme that funded a lavish lifestyle comprising five-star hotel stays, flying on private jets and purchasing a villa.
He is currently facing up to 20 years behind bars but is reportedly expected to receive a two-to three-year bid when he’s sentenced on November 7.
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“Mr. Wright used stolen account information as his very own unlimited funding source, using victims’ payment cards to finance an extravagant lifestyle and advance his career,” U.S. attorney Joshua S. Levy said in a statement. “Mr. Wright’s conduct affected countless businesses and individuals across the United States who had to foot his nearly $140,000 bill in unauthorized transactions. Mr. Wright flaunted his lavish spending on social media, in music videos and in industry news.
He continued: “This office and our law enforcement partners are committed to ensuring that individuals and businesses are protected against fraudsters. This case should serve as a reminder that if you break the law, you will be prosecuted and held accountable – regardless of who you are.”
