A former Atlanta man, who allegedly described himself as music promoter who arranged contracts for"aspiring musicians, was arrested last week after federal authorities say he ran a more than $2 million investment scheme.
Michael Steven Banuelos, 41, told investors that his companies had commitments from musical labels to pay as much as $285 million for the rights to various artists, according to a indictment in U.S. District Court in San Francisco.
An attorney for Banuelos declined comment when reached Tuesday.
Among the investors is an unnamed Georgia resident who served as a business manager for a musical group that included the manager's son. Banuelos was arrested in Chicago, where authorities say he recently relocated.
Prosecutors say Banuelos promised investors hefty returns once contracts came through, but authorities allege he failed to tell investors he spent their money on "alimony, luxury car payments, private jet rentals, a country club membership," jewelry and clothes.
The indictment contends Banuelos claimed one of his firms had commitments of $23 million, $27 million and $285 million, respectively, for the rights to various artists. Prosecutors said Banuelos claimed another firm, Ferrari Mike Music Group, had an agreement with another label for $270 million.
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