Prosecutors say the men claimed rights to 50,000 Spanish-language songs they didn’t own, using the royalty money to buy mansions, fancy cars and jewelry.
Two men have been charged with allegedly running a years-long music royalty scam, in which they collected more than $20 million in payments from YouTube GOOGL, +1.36% by falsely claiming to hold the rights to 50,000 Spanish-language songs.
Teran and Batista signed contracts with the management firm to monetize the music online, prosecutors said. The management firm then established MediaMuv’s credentials with YouTube, giving them copyright claims to the songs on the video platform. Prosecutors say that when the legitimate right’s holder for one song — identified in court papers only by the initials D.H. — filed a complaint to the third-party management company claiming copyright infringement, Teran boldly insisted the person had no legal grounds to stand on.
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