NEW YORK (CelebrityAccess) — During R. Kelly’s sentencing hearing, Federal Prosecutors alleged he concealed millions in assets by transferring some of his intellectual property rights to a friend in 2021.
According to Business Insider’s Jacob Shamsian and Haven Orecchio-Egresitz, Assistant US Attorney Elizabeth Geddes told a Federal Court on Wednesday that Kelly sold his composition and lyrics rights to a childhood friend, Keith Halbert.
Halbert also received hundreds of thousands of dollars from royalty payments connected to those rights, prosecutors said.
Geddes said that Kelly’s master recording rights are being overseen by Sony, who has withheld royalties from his master recordings while resolving judgements related to civil legal proceedings against Kelly.
According to Geddes, Sony is currently sitting on between $3.5 and $4.5 million worth of royalties, which is less than the $7 million in judgements that he currently owes.
Jennifer Bonjean, an attorney representing Kelly says she’s unfamiliar with the sale to Halbert but expressed doubts at the $5 million dollar valuation, noting that Kelly’s royalties went down significantly during his trial.
“I am not familiar with him being able to get $5 million,” she said, according to Business Insider.
“I think he’s pretty close to indigent,” Bonjean added. “He doesn’t have any regular sources of income.”