Studio Fire Leads to Fraud Lawsuit [PSN]

A longtime Memphis studio finds itself embroiled in a sticky legal situation, reports Clive Young of Pro Sound News.

After having been awarded hefty insurance payout following a fire, Kiva Recording Studio is now being accused of insurance fraud, and potentially on the hook to have to pay back $2.8 million they were awarded earlier:

[T]he two-story building owned by Tattooed Millionaire Entertainment LLC. had a history with local authorities. Police had come to the studio 15 times already that year, responding to reports of intruders, theft of a tour bus, alarms going off and graffitied death threats on the side of the building.

When authorities finally got inside the gasoline-soaked building after the fire, they discovered that various musical items had been stolen—guitars, amplifiers and gold record awards—and areas had been vandalized with spray paint. Brown claimed that local street gangs had stolen most of the equipment.

According to the lawsuit, while Brown provided invoices, receipts and documentation…liquidators that were claimed to have sold the equipment had no records of the purchases and said the documentation provided had been falsified.

Find out why things have gone south at Kiva Recording Studio, in this article by Clive Young of Pro Sound News.

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