Rapper 50 Cent doesn’t even have two quarters to rub together right now. TMZ reports that the rapper’s bank accounts have been frozen.
50 Cents accounts were frozen after he failed to pay a $17.2 million judgment against him over a deal he made on headphones for a company called Sleek Audio. In court Sleek claimed that 50 Cent stole its design an attempted to market it as his own.
According to TMZ, 50 Cent is appealing the judgment and that Sleek has attempted to hold funds from any account that they can locate.
The rapper reportedly has a net worth of $500 million. So the hit of $17.2 million is a big one, but nothing 50 Cent would have to sweat over. His failure to make good on the judgment may make life a bit more difficult for him as the frozen accounts cause him to not be able to access any of his business funds.
According to CBS, 50 Cent had entered into an agreement with Sleek headphones to market their design. They paid the rapper $1 million to set things in motion, but the deal fell through. Not long after the failed deal 50 Cent began marketing his own line of headphones called Sync by 50. 50 Cents new line used the same design and mechanics as Sleek’s.
50 Cent claims that he stole from no one and that he used his ‘professional experience’ to build the headphones.
Sleek also alleged in the lawsuit that 50 Cent and his partner stole the company’s private client list that held thousands of names. Sleek said this list ‘just disappeared’ after the deal fell through.
The lawsuit against 50 Cent that has resulted in frozen assets, included misappropriating trade secrets, breaching his confidentiality agreement and participating in civil conspiracy.
50 Cent filed a counter suit alleging that Sleek fraudulently induced him into entering into the investment and breaching its fiduciary duties to him.
Last May, an arbitrator sided with Sleek. The company was given an award of $11,693,247 in damages plus $4,488,331 in attorney’s fees. Since the judgment 50 Cent has been fighting paying attorney fees. When all the numbers were crunched 50 Cent owed Sleek $17 million.
“Thus the arbitrator can sympathize with Jackson’s growing frustration that he was putting money into Sleek and not, in his opinion, seeing the results that he assumed would be forthcoming on a timely basis. Likewise, the arbitrator can appreciate the [Sleek team’s] frustration with what they perceived to be Jackson’s team taking control of their company … However, Jackson’s frustrations do not justify the actions he took or were taken on his behalf,” the final court papers read.
50 Cent’s attorney states that the rapper is set to appeal again, but for the time being the rapper’s accounts will remain frozen, but don’t feel too sorry for the rapper, his personal bank accounts are still accessible.