Birdman Tries To Block His Music Money From Being Seized in $20 Million Court Battle
Birdman has rushed to court in an attempt to save his music income from being seized as part of an ongoing $20 million legal battle.
According to court documents obtained by The Blast, Birdman is demanding a judge not allow one of his creditors from taking profits made from his Florida recording studio.
The lawsuit in question was filed in 2017 by a company named EMG Transfer Agent. The lender accused Birdman of borrowing $12 million from them and using his Miami mansion as collateral.
The suit accuses Birdman of defaulting on the loan and seeks $20 million in damages.
Birdman has denied the allegations of wrongdoing. He believes the lender gave him a sham loan and has demanded the case be tossed.
Months after the case was filed the judge appointed a receiver to take possession of Birdman’s mansion. The receiver took control of the home and all property inside.
EMG Transfer Agent recently went to court demanding all profits from Birdman’s recording studio. The studio is located at Birdman’s former Miami home. The lender argued the profits should also be seized.
In newly filed court documents, Birdman is firing back and demanding they be shut down. He says his recording studio was never put up as collateral for the $12 million loan.
The rapper says the studio may be located at the Miami mansion. Birdman says the studio income is not tied to it being on the property. He argues his studio would make money if at another location.
Birdman says, “Plaintiff may argue that the property and recording studio are the same, but that would be simply wrong. The recording studio business is not the property and could move to another location while the “Property stays.”
He is pleading with the judge to side with him and not cause havoc to his music business.
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In Birdman’s countersuit against EMG, he demands “the return of all money or property given as earnest money or down payment” and for the termination of the loan along with the return of all finance charges and unspecified damages. The legal battle is still dragging on two years later.
The Cash Money Records founder’s former 9-bedroom, 17-bath mansion — which was once owned by producer Scott Storch — has 25-foot ceilings and features a below ground pool, outdoor pool with cabana, a movie theater, gym, spa, an in-house massage room, 100 feet of waterfront and a private dock.
During the battle, Birdman rushed to court at one-point pleading with the judge to help him get back the property that was in storage. He tried to get certain property returned including his music awards, including BET Award and MTV Awards, along with record plaques of Drake, Nicki Minaj and Lil Wayne. The judge denied his request and refused to give him the items.
In September, Birdman was hit with a $1,069,876 default judgment in a separate lawsuit. The case was brought by his ex-employee, Nicolas Jose Penzo, who accused Birdman of failing to pay him proper wages or overtime.
Penzo has begun the process of trying to collect on his money and recently tried to seize Birdman’s bank accounts.
He was not able to garnish any of the assets because Birdman had closed several accounts. The account closures came months before Penzo's fired off subpoenas.
