Ne-Yo’s Montclair Manager Tried To Rip Off Star For $2M: Prosecutors

Montclair, NJ – A federal jury has indicted Ne-Yo’s business manager – a Montclair resident – for allegedly trying to rip off the R&B star, authorities say.

According to the U.S. Attorney’s Office, a federal grand jury charged 40-year-old Kevin R. Foster with wire fraud, money laundering and conspiracy to commit money laundering in an indictment returned in Columbus, Ohio on Friday.

Prosecutors stated that the case began from the prior prosecution of Thomas E. Jackson and Preston J. Harrison, who raised about $9 million from investors under false pretenses to start and market the sports beverage “OXYwater.”

A jury convicted Jackson and Harrison of multiple wire fraud, money laundering, and tax fraud charges in March of 2015, prosecutors said.

Prosecutors allege that while serving as business manager for Ne-Yo – whose real name is Shaffer Smith – Foster convinced the entertainment icon to invest $2 million into OXYwater under “false representations.”

However, Foster did not disclose to Smith that he served as a controller for the company or that he would earn commission based on investments, prosecutors charge.

“Unbeknownst to Smith, Foster allegedly invested an additional $1.5 million of Smith’s money into the product without his consent and fraudulently took out $1.4 million in lines of credit under Smith’s name by forging his signature,” prosecutors stated in a news release.

Prosecutors say that Foster allegedly received about $800,000 in finder’s fees based on Smith’s investments into OXYwater.

Foster was charged with three counts of wire fraud, one count of conspiracy to commit money laundering and three counts of money laundering.

Prosecutors said that wire fraud is punishable by up to 20 years in prison; money laundering and conspiracy to commit money laundering are each crimes punishable by up to 10 years in prison.

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Photo: Ne-Yo, Wikimedia Commons