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| Pictured (From left): Lil Wayne, Chris Brown, and Tyga are pictured on the set of their "Loyal" music video. A 2024 report alleges Brown and Lil Wayne misused millions in COVID-19 relief funds intended for struggling artists. |
While everyday Americans struggled during the pandemic, some of hip-hop's biggest stars were living large on taxpayer-funded COVID-19 relief money, according to a bombshell investigation by Business Insider.
The report reveals how millions of dollars meant to rescue struggling artists and shuttered venues were allegedly funneled into the pockets of celebrities like Lil Wayne and Chris Brown.
These stars then used the funds to bankroll extravagant lifestyles, according to the report.
These revelations are part of a broader pattern of COVID-19 relief fraud and abuse that has plagued numerous federal aid programs, raising serious questions about government oversight and accountability.
The Shuttered Venue Operators Grant program, a federal initiative championed by Sen. Chuck Schumer in 2020, was intended as a lifeline for independent music venues and working-class artists devastated by pandemic shutdowns.
Schumer said the program would ensure that "young artists" and "middle-class people" could weather the economic storm.
Rapper Lil Wayne, whose real name is Dwayne Carter Jr., received a staggering $8.9 million in SVOG funds through his touring company, Young Money Touring, Inc.
While the money was ostensibly earmarked for touring expenses, records obtained by Business Insider indicate a significant portion was spent on luxuries that had little to do with keeping his crew employed.
According to the report, over $1.3 million went to private jet travel, $460,000 was spent on high-end clothing, and $175,000 was used for a music festival promoting his marijuana brand, GKUA.
An additional $15,000 was reportedly used for flights and hotel stays for women with no clear connection to his tours.
Chris Brown's financial exploits were equally eyebrow-raising.
His company, CBE Touring, Inc., received $10 million in SVOG funds.
Records show that Brown spent $80,000 of that money on a lavish 33rd birthday party for himself, complete with an LED dance floor and body-painted models.
Brown also apparently used $24,000 in grant money to transport his tour bus to Tulum, Mexico, where he filmed a music video — but did not perform, Business Insider reported.
While stars like Lil Wayne and Chris Brown were enjoying the largesse, their crews were often left with meager compensation.
The Business Insider investigation highlights a disturbing disparity between the millions flowing to headliners and the comparatively small sums doled out to the roadies, technicians, and other workers who make live music possible.
Many smaller venues and independent artists, the intended beneficiaries of the SVOG program, have reported receiving inadequate support or facing bureaucratic hurdles that prevented them from accessing funds, further fueling the sense of injustice.
The Small Business Administration, which administered the SVOG program, has faced intense criticism for its apparent lack of oversight.
Initially, musicians and their loan-out companies were deemed ineligible for the grants.
However, a December 2021 internal memo reversed that decision, paving the way for wealthy artists to receive substantial payouts. The SBA has yet to explain this abrupt policy shift.
Further fueling concerns, the agency prioritized speed over scrutiny, postponing anti-fraud checks until after funds were disbursed.
A staggering $6 billion in grants remains under review for compliance, according to Business Insider.
The SBA has stated that it is working with law enforcement to investigate credible evidence of fraud, but critics argue that more needs to be done to recover misspent funds and hold those responsible accountable.
"They were just trying to get money out. If it was fraudulent, if it was not eligible – whatever," an SBA insider told Business Insider, speaking on condition of anonymity.
The fallout from the scandal has been swift and severe.
"It never crossed my mind that we should be trying to get this money for my artists," one manager who lobbied for the program told Business Insider, requesting anonymity due to the sensitivity of the issue.
Brandy Hotchner, who runs the Arizona Actors Academy, said the funds saved her school during the pandemic.
She called the misuse by celebrities "a disappointment" that could tarnish public trust in government support for the arts.
Business Insider reports that the SBA has recovered $43 million in misspent COVID-19 relief funds but has yet to assign staff to review the remaining cases.
Calls for greater accountability have grown louder, with some lawmakers demanding a thorough investigation into the SVOG program's administration.
Sen. Schumer's office has not yet released a public statement addressing the specific allegations raised in the Business Insider report.
The revelations underscore the challenges of balancing rapid relief with effective oversight and raise troubling questions about who truly benefited from a program designed to help those most in need.
The report reveals how millions of dollars meant to rescue struggling artists and shuttered venues were allegedly funneled into the pockets of celebrities like Lil Wayne and Chris Brown.
These stars then used the funds to bankroll extravagant lifestyles, according to the report.
These revelations are part of a broader pattern of COVID-19 relief fraud and abuse that has plagued numerous federal aid programs, raising serious questions about government oversight and accountability.
The Shuttered Venue Operators Grant program, a federal initiative championed by Sen. Chuck Schumer in 2020, was intended as a lifeline for independent music venues and working-class artists devastated by pandemic shutdowns.
Schumer said the program would ensure that "young artists" and "middle-class people" could weather the economic storm.
However, Business Insider's findings suggest that for some, "weathering the storm" involved private jets, lavish parties, and questionable travel expenses, all courtesy of the U.S. taxpayer.Last year we discovered a COVID relief fund meant for struggling arts venues had given $200M+ to wealthy musicians. But we didn't know HOW they spent it — until now. We got the literal receipts, with @TheNewsHam and @ByKLong reviewing thousands of pages of accounting docs pic.twitter.com/jvJjAlIv6J
— Jake Swearingen (@JakeSwearingen) December 18, 2024
Rapper Lil Wayne, whose real name is Dwayne Carter Jr., received a staggering $8.9 million in SVOG funds through his touring company, Young Money Touring, Inc.
While the money was ostensibly earmarked for touring expenses, records obtained by Business Insider indicate a significant portion was spent on luxuries that had little to do with keeping his crew employed.
According to the report, over $1.3 million went to private jet travel, $460,000 was spent on high-end clothing, and $175,000 was used for a music festival promoting his marijuana brand, GKUA.
An additional $15,000 was reportedly used for flights and hotel stays for women with no clear connection to his tours.
Chris Brown's financial exploits were equally eyebrow-raising.
His company, CBE Touring, Inc., received $10 million in SVOG funds.
Records show that Brown spent $80,000 of that money on a lavish 33rd birthday party for himself, complete with an LED dance floor and body-painted models.
Brown also apparently used $24,000 in grant money to transport his tour bus to Tulum, Mexico, where he filmed a music video — but did not perform, Business Insider reported.
While stars like Lil Wayne and Chris Brown were enjoying the largesse, their crews were often left with meager compensation.
The Business Insider investigation highlights a disturbing disparity between the millions flowing to headliners and the comparatively small sums doled out to the roadies, technicians, and other workers who make live music possible.
Many smaller venues and independent artists, the intended beneficiaries of the SVOG program, have reported receiving inadequate support or facing bureaucratic hurdles that prevented them from accessing funds, further fueling the sense of injustice.
The Small Business Administration, which administered the SVOG program, has faced intense criticism for its apparent lack of oversight.
Initially, musicians and their loan-out companies were deemed ineligible for the grants.
However, a December 2021 internal memo reversed that decision, paving the way for wealthy artists to receive substantial payouts. The SBA has yet to explain this abrupt policy shift.
Further fueling concerns, the agency prioritized speed over scrutiny, postponing anti-fraud checks until after funds were disbursed.
A staggering $6 billion in grants remains under review for compliance, according to Business Insider.
The SBA has stated that it is working with law enforcement to investigate credible evidence of fraud, but critics argue that more needs to be done to recover misspent funds and hold those responsible accountable.
"They were just trying to get money out. If it was fraudulent, if it was not eligible – whatever," an SBA insider told Business Insider, speaking on condition of anonymity.
The fallout from the scandal has been swift and severe.
"It never crossed my mind that we should be trying to get this money for my artists," one manager who lobbied for the program told Business Insider, requesting anonymity due to the sensitivity of the issue.
Brandy Hotchner, who runs the Arizona Actors Academy, said the funds saved her school during the pandemic.
She called the misuse by celebrities "a disappointment" that could tarnish public trust in government support for the arts.
Business Insider reports that the SBA has recovered $43 million in misspent COVID-19 relief funds but has yet to assign staff to review the remaining cases.
Calls for greater accountability have grown louder, with some lawmakers demanding a thorough investigation into the SVOG program's administration.
Sen. Schumer's office has not yet released a public statement addressing the specific allegations raised in the Business Insider report.
The revelations underscore the challenges of balancing rapid relief with effective oversight and raise troubling questions about who truly benefited from a program designed to help those most in need.
