Officials say Kevin R. Foster, a business manager from Montclair, represented Ne-Yo and Brian McKnight, who he defrauded of millions of dollars through investments in OXYWater, a sports drink company.
According to the U.S. Attorney’s Office in Columbus, Ohio, he has been sentenced to 89 months in prison.
Reports say that Foster persuaded Ne-Yo to invest $2 million in OXYWater. Then he forged Ne-Yo's signature to get a $1.4 million line of credit.
According to officials, Foster also invested in OXYWater for McKnight without his knowledge.
Officials say that Foster also spent the money on luxury cars, a chauffeur, and Super Bowl tickets.
“Foster deceived his victims into believing they were investing in a profitable sports beverage company when, in reality, he was using their money as a personal slush fund for his lavish lifestyle,” U.S. Attorney Benjamin Glassman said. “His ongoing and systematic deception also included stealing millions of dollars of additional funds. Not only did Foster betray the trust of his clients who believed he would act in their best interest, but he also used his accounting expertise to fraudulently report his income and live a virtually tax-free life.”
According to reports, a jury convicted Foster of 16 charges that included money laundering, bankruptcy fraud, and tax evasion.
Officials say that Foster must pay almost $8 million in restitution, including $1.4 million that goes to the IRS.