From left to right: Marshmellow, Chris Brown, Lil Wayne, Steve Aoki, among artists, were found to have used pandemic relief grants for personal expenses and luxury items, investigation finds. (GV Wire Composite/David Rodriguez)
- Lil Wayne spent $1.3 million of his $8.9 million grant on private jets, $460,000 on designer clothes.
- Chris Brown used $5.1 million of his $10 million grant as personal compensation, spent $80,000 on birthday party.
- SBA faced pressure to disburse funds quickly, leading to relaxed anti-fraud controls and oversight issues.
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A Business Insider investigation has revealed how wealthy musicians used a pandemic relief program intended for struggling venues to fund luxury expenses and personal payouts.
The Shuttered Venue Operators Grant program, established in 2020, was meant to support independent venues and arts groups during COVID-19 shutdowns.
High-Profile Artists Misuse Grants
However, some high-profile artists exploited the program through their loan-out companies. Lil Wayne received an $8.9 million grant, spending over $1.3 million on private jets and $460,000 on designer clothes. Chris Brown used $5.1 million of his $10 million grant as personal compensation and spent nearly $80,000 on his birthday party.
Other artists like Marshmello, Steve Aoki, and members of Alice in Chains and Shinedown also paid themselves millions from their grants. Often, these payouts far exceeded what was given to touring crew members and staff.
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SBA Faced Pressure to Disburse Funds Quickly
The Small Business Administration, which oversaw the program, faced pressure from Congress to disburse funds quickly. This led to relaxed anti-fraud controls upfront, with plans to verify eligibility and spending after distribution.
Some SBA employees expressed frustration with the process, feeling that concerns about eligibility and spending were ignored. “Everybody kept saying shut up, sit down. Process the file,” one current SBA employee told Business Insider.
Senator Gary Peters called the celebrities’ use of these grants “an abuse of federal resources.” The SBA has reportedly recouped $43 million in grants, but $6 billion worth remain under review.
While the program did help many struggling arts organizations, its exploitation by wealthy artists has raised questions about oversight and the potential misuse of taxpayer funds during the pandemic.
Read more at Business Insider.
