Fat Joe, Sean 'Diddy' Combs, DJ Khaled, and Shawn Carter AKA Jay-Z. Inset: Tidal, Michael Smith charged with three count criminal indictment, including conspiracy to commit wire fraud.
Fat Joe, Sean ‘Diddy’ Combs, DJ Khaled, and Shawn Carter AKA Jay-Z at Khaled’s 2022 Hollywood Walk of Fame Ceremony. Inset: Tidal, Michael Smith charged with a three count federal criminal indictment, including conspiracy to commit wire fraud.

EXCLUSIVE: Roc Nation insider reveals ties between Jay-Z, Roc Nation, Tidal, Sound Royalties, and indicted streaming fraudster, Michael Smith. Our investigation delves deeply into how Michael Smith benefited Jay-Z’s Tidal, Smith’s alleged opioid trafficking connections, and how Roc Nation hid their management of Tidal in order to unfairly boost their own artists.

We spoke to the music industry insider, on the condition of anonymity, about what they witnessed while working at Roc Nation. They spoke to us about the secret inner dealings between Roc Nation, their music-streaming service Tidal, and the role of alleged music streaming fraudster, Michael Smith. Among the evidence is internal emails from Roc Nation executives showcasing the collusion.

The $10 million music fraud scheme, resulted in Michael Smith’s three count federal indictment in September, 2024. The scheme allegedly revolves around music streaming fraud, aided by artificial intelligence and bots.

Michael Smith, curiously enough, is now being repped by Sean ‘Diddy’ Combs attorneys, Anna Estevao and Justine Harris.

Roc Nation Was Running Music Streaming Service Tidal

The insider stated, “They never wanted anyone to know Roc Nation was managing Tidal. The implication being that Roc Nation’s ownership and management of Tidal, created an unfair monopoly and favoritism for Roc Nation artists.”

Jay-Z purchased the streaming service Tidal in 2015, with scandals plaguing it ever since. Tidal’s launch showcased “16 artist stakeholders,” front and center. The message was clear. Tidal’s music streaming service was supposed to give artists a piece of the financial pie. Then the police investigations started.

Tidal stakeholders. Credit: Dagens Næringsliv
Tidal artist stakeholders. Credit: Dagens Næringsliv

Jay-Z’s Tidal was scrutinized by police in Norway in 2018 and 2019 for suspected streaming fraud.

“They never wanted anyone to know Roc Nation was managing Tidal.”

The insider points to fraud involving Beyonce’s Lemonade album, among many other Roc Nation artists who benefited from the scheme. Beyonce’s album was released and distributed by Sony Music and Universal Music Group in 2016.

Norwegian newspaper Dagens Næringsliv was “surreptitiously given a hard drive containing internal company play data, billions of lines of it, spread across dozens of files.” Their 2017 investigation revealed copious amounts of streaming fraud.

In 2018, Tidal was accused of faking hundreds of millions of plays for both Beyonce and Kanye West.

TIDAL | #TIDALforALL – 3/30/2015, Tidal, Youtube.

Michael Smith’s Role in Tidal

Besides being a common fixture at Tidal events and parties in 2015, sometimes alongside Jay-Z himself, our insider revealed the dirty details of just how Michael Smith was involved with Roc Nation and Tidal. 

The Opiod Trafficking Connection 

Our insider spoke candidly about Michael Smith’s main business, operating twenty-two medical clinics. How exactly Michael Smith went from the medical clinic business, to working in the music industry, seems to be a bit of a mystery. However it seems to involve access to certain people with money.

The insider revealed to us that Jay-Z was going to invest in Michael Smith’s medical clinics. Was there a connection between “opioid trafficking,” and Michael Smith’s access to music industry artists? Our insider states so.

Michael Smith headlined the production of TV show, One Shot for BET. The 2016 television show consisted of Roc Nation artist DJ Khaled, Sway Calloway, Twista, and others. DJ Khaled, real name Khaled Mohammed Khaled, is alleged to be a partner in Sound Royalties, and has been a recurring name in our insider’s testimony. The show One Shot, is currently streaming on BET+, in a deal allegedly brokered by DJ Khaled and Sound Royalties. More on that in PART 2.

Michael Smith US DOJ Medicare Fraud Indictment
One Shot, television show. Sway Calloway, DJ Khaled, Kxng Crooked, DJ King Tech who is “Sway’s lifelong partner,” and Michael Smith.

Smith’s Prior Indictments

Michael Smith was named as a defendant in 2020 alongside his clinics, Carolina Comprehensive Health Network (CCHN),  in the US DOJ’s lawsuit for their role in Medicare and Medicaid fraud.

Michael Smith Indictment by US DOJ for Medicare Fraud. Source: DOJ
Michael Smith Indictment by the US Department of Justice for Medicare Fraud in 2020. Source: DOJ

Roc Nation’s Shady Business – Criminal Syndicate?

A newly filed lawsuit accuses current Roc Nation CEO Desiree Perez AND Roc Nation of numerous illegal acts, including racketeering. The complaint filed in federal court, makes a point to highlight Perez’s conviction for cocaine trafficking and status as a convicted felon. How Perez ended up as Roc Nation’s CEO seems to be yet another mystery.

As Norwegian newspaper Dagens Næringsliv has stated, Jay-Z is known for dealing crack as a teenager.

The lawsuit, filed by Perez’s own daughter, have many questioning why Roc Nation’s leadership, has such strong connections to alleged criminal acts, and more specifically, drug trafficking.

Shawn Carter AKA Jay-Z, pictured with current Roc Nation CEO Desiree Perez and husband Juan Perez.
Shawn Carter AKA Jay-Z, pictured with current Roc Nation CEO, Desiree Perez and husband Juan Perez. Roc Nation and Desiree Perez are being sued for racketeering, amongst other crimes.

 

Jay-Z arrested in New York in 1999 for stabbing a record executive.
Jay-Z was arrested in New York in 1999 for stabbing a record executive. Source: Dagens Næringsliv.

 

This is part of an ongoing investigative series.

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This article may contain AI generated content.

 

 

By Paul Smith

An investigative journalist exposing criminality and corruption everywhere.