Arizona Man In $23 MILLION Youtube Scam Gets 70 Months In Prison

June 29, 2023 by No Comments

One of the two individuals involved in a YouTube content scam that generated over $23 million is now facing a 70-month prison term, as requested by the United States. The government aims to discourage potential fraudsters by imposing this lengthy sentence.

Back in 2021, Jose Teran from Scottsdale, Arizona, and Webster Batista Fernandez from Doral, Florida, were accused of perpetrating a scheme to steal royalties from YouTube. They falsely claimed ownership of more than 50,000 unmonetized Spanish-language songs and uploaded them to the platform.

To bolster their claims, they even used forged notes purportedly from the actual artists. This enabled them to gain approval from YouTube for the Content ID system, which identifies songs in uploaded videos to allow rightful rights holders to claim advertising revenue. Additionally, they entered into a sound recording and audiovisual content license agreement, allowing Google to offer the music to users in exchange for monetization revenue.

The defendants established a company called MediaMuv to collect the funds. Through a third-party entity referred to as A.R., MediaMuv gained trusted status as a YouTube Content ID member. At its peak, MediaMuv employed five to eight individuals who utilized specialized software to identify unmonetized music for inclusion in their catalog.

They used a portion of their illicit profits to purchase a $550,000 mansion in a city where the average house price is $450,000 and indulge in jewelry worth $62,000.

Teran, an aspiring musician who admired his co-defendant considered as the mastermind, believed that Batista, a supposed successful businessman in the music industry, could help him realize his dream of producing music, movies, and music videos. Teran regarded Batista as a close friend and was enthusiastic about receiving advice and partnering with him, as stated by Teran’s attorney.

Batista pleaded guilty in the previous year, while Teran reached a plea agreement in February, confessing to wire fraud and money laundering.

Teran is scheduled to receive sentencing later this month, with a recommended term of 70 months.

Prosecutors revealed that Teran acquired more than $6 million from the fraudulent scheme, which he used to sustain an extravagant lifestyle. Furthermore, he continued to receive fraudulent royalty payments even after being indicted.

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