YouTube scammers, Jose “Chenel” Teran and Webster “Yenddi” Batista Fernandez, are ordered to pay $3 million to victims of their fraud. This year, Teran and Fernandez were both sentenced to prison for committing possibly the largest royalty scam in YouTube history.
The scam that led to imprisonment
The duo created MediaMuv, a company they used to identify unmonetized songs and claim rights to their royalties. Their scam claimed royalties from over 50,000 songs of different Latino artists. The scam itself went on from 2016 to 2021. In total, the fraud collected more than $23 million worth of royalties. Teran and Batista used the fraud money to fund their lavish lifestyles.
The IRS began investigating the company in 2019 and officially prosecuted Teran in 2021. The court hearings found that the company even partnered with AdRev to make their claims appear legitimate. The duo falsified contracts with artists to successfully claim royalties. After hearings and investigations, Teran and Batista were indicted on 30 counts of fraud, money laundering and identity theft.
Over $3 million has to be given back to the victims
According to a report by Billboard, the IRS has already seized $1 million. Another $1 million expected to be collected by selling Teran and Batista’s house. The 2 million collected will be divided and sent to the victims of Teran and Batista’s scheme withiin the coming months.
Nearly $1.4 million is to be given to Regalias Digitales, $1.2 million to the Recording Industry Association of America (RIAA), $153,000 to Jose Luis Perales, $149,000 to Los Caminantes and many more. The rest of what Teran and Batista owe would be paid back slowly once they are released from prison in five years.
