It would seem a few folks have been dipping their hands in the artists coffers, of course if they where RIAA members, signed artists the coffers would be bare already as they take their share before anyone else gets a look in.
http://www.washingtonpost.com/wp-dyn/content/article/2005/09/04/AR2005090401310.htmlA federal criminal investigation is underway after $1.25 million in songwriter royalties allegedly was embezzled from the Songwriters Guild of America by its royalty manager and her family members.
The SGA's special counsel, Charles Sanders, said the FBI, the Internal Revenue Service and the U.S. Postal Service are working with the guild to determine the full extent of any criminal activities.
The SGA represents about 5,000 songwriters and their estates. Members may elect to have the guild collect royalties for them from publishers, collecting societies and others.
The SGA collects nearly $16 million in royalties annually and holds about 2 percent of that amount when it cannot find current addresses for writers.
According to a federal civil lawsuit the SGA filed in July, Marsha Aiken became the guild's royalty manager in 2002 and created a fraudulent membership account under the name Anthony Ray, whom the IRS later identified as her cousin.
Its a pity the artists are the ones being hit here, those folks are entitled to this money, some are reliant upon it even, this is a sorry and preventable loss, thanx to the IRS it has been unmasked (and yes thats the last time you,ll hear me say that
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