Damon Dash, the former Hip-Hop mogul and co-founder of Roc-A-Fella Records, finds himself in deep financial straits as mounting debts and legal judgments threaten to strip him of more assets, including copyrights to films he produced.
A federal auction in Manhattan recently saw Dash’s one-third ownership stake in Roc-A-Fella Records sell for $1 million, falling short of covering his extensive financial obligations. The sale was mandated to settle various debts, including $823,284.71 awarded to filmmaker Josh Webber and Muddy Water Pictures in a defamation and copyright infringement lawsuit.
The lawsuit alleged unpaid debts tied to Dash’s alleged attempt to hijack the film Dear Frank. The proceeds from the auction were divided among creditors, with $193,877.57 directed to back child support owed to New York City and $1,702,626.34 allocated toward Dash’s $8 million tax debt to New York State.
However, Webber and Muddy Water Pictures remain unpaid, alongside other creditors, including photographer Monique Bunn and writer Edwyna Brooks. Legal filings indicate that Dash could face additional auctions of personal property to address these outstanding liabilities.
Among the assets potentially at risk are copyrights tied to films Dash produced, including We Went to… China, Welcome to Blackroc, and Honor Up, the latter of which was executive produced by Kanye West. These films are integral to Poppington LLC, Dash’s media company, and air on his television network, America Nu.
Webber’s legal team has sought court orders to compel Dash to turn over ownership documents for Poppington LLC. If the business cannot be sold, they are requesting permission to auction the films to recover funds.
Despite the federal auction, creditors face challenges in competing for limited proceeds. Higher-priority claims, such as unpaid state taxes, continue to overshadow settlements for lower-ranking debts.
Dash’s financial woes mark another chapter in his legal and business struggles, with creditors and the courts working to untangle the complexities of his financial obligations.
Source: AllHipHop
