More Details On Spanish Music Collection Society Corruption: Accused Of Stealing $550 Million From Artists
from the lovely-people dept
TorrentFreak has additional details as well, about the scheme that seems extremely questionable. Basically, the accusations are that SGAE hired some "consultants" to set up a supposedly independent subsidiary. The thing is, some of those consultants were relatives of SGAE execs:
The complaint alleges that SGAE operatives set up companies and used revenue destined for artists to generate profit for themselves and their families, and that money bound for artists living abroad was diverted to personal Swiss bank accounts.This all sheds additional light on SGAE's rather fanatical approach to increasing who it could collect the digital levy from. It sounds like they weren't necessarily looking for more money from artists, but potentially for themselves...
At the center of the storm is SDAE, the digital rights arm of SGAE. Although a notionally separate entity, SDAE is fully operated by SGAE. It appears that when SDAE was being set up, SGAE hired a for-profit company called Microgenesis as consultants.
Microgenesis describe themselves as “a team of specialists in engineering, consultancy and development, managed by individuals with established experience in the fields of intellectual property, as well as the culture and entertainment industries.”
Microgenesis operated a number of companies which provided various services for SGAE and SDAE, some of them suspiciously registered at SGAE/SDAE’s own office address. The problems only deepen when one learns who is behind Microgenesis.
Jose Luis Rodriguez Neri is Director General of SDAE and ex-director of SGAE. His wife, Maria Antonia Garcia Pombo, is the ex-president of Microgenesis. Partner-Chief Legal Officer of Microgenesis is Eva Garcia Pombo. She is Neri’s sister-in-law.