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T.I. sued for fraud by former employees after $660K found in bank transfers

Scales 925 opened in 2015, closed in 2016 and filed for bankruptcy in May.

This story has been updated.

Atlanta rapper and actor T.I. is being accused of fraudulently taking money he owed former employees of his Scales 925 restaurant, the Blast reported Monday.

» RELATED: T.I.'s shuttered Scales 925 to reopen as The League Tavern

The Ivan Allen Boulevard establishment opened in 2015, closed in 2016 and filed for bankruptcy in May.

When it opened, AJC food writer Elizabeth Lenhard gave the restaurant zero stars, calling the food "pretty terrible."

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Court documents obtained by the tabloid in October showed T.I. transferred $40,000 to himself and his business associates.

The lawsuit from the employees suggested the $40,000 T.I. took should have gone to them as a previous $78,000 settlement hadn’t been paid off yet.

A newly-filed amended suit alleges that T.I. and his partner, Charles Hughes, “diverted hundreds of thousands to themselves during a time they knew the business was in financial turmoil,” the Blast reported Wednesday.

The ex-employees found new information showing T.I. and Hughes allegedly making bank transfers from the restaurants to themselves, amounts totaling $663,933.98.

According to the Blast, the former employees want the court to order them to turn over the entire amount.

» RELATED: T.I. sued by his Atlanta restaurant employees

The group of ex-employees, including Avery Lee, Kyle Vargas, Khori Vargas and Shawn Yarborough, previously sued the rapper for “screwing them out of overtime pay” and paying executives “unreasonably” high salaries as the restaurant was losing business, according to the Blast.

In July 2016, lawsuits from employees suggested they never received their final paychecks.

» RELATED: T.I. sued by ex-restaurant employee claiming he wasn’t paid

Lee, a former bar manager at the joint, sued T.I. in May 2017, claiming he wasn’t paid a $27,486 default judgment he won against a limited liability company in charge of the restaurant’s management, The AJC previously reported.

T.I.’s attorney Albert Chapar Jr. said his client isn’t responsible for the debt as “he was solely an investor and someone whose name was used to promote the restaurant,” not the owner.

About the Author

Fiza Pirani is a web producer and writer for The Atlanta Journal-Constitution. She is also currently investigating immigrant and refugee mental health stigma and health care access as a recipient of the Rosalynn Carter Fellowship for Mental Health Journalism.

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