47°
Kevin R. Foster, 43, represented musicians Ne-Yo, who was born Shaffer Smith, and Brian McKnight, the famed R&B singer. Foster convinced Smith to invest $2 million in OXYWater, invested another $1.5 million with Smith’s knowledge and also forged his signature to get a $1.4 million line of credit.
Foster also invested in the company on behalf of McKnight without his knowledge. In addition to putting money into the floundering venture, Foster also spent on himself, buying luxury cars including a Rolls-Royce, hiring a personal driver and purchasing Super Bowl tickets.
“Foster deceived his victims into believing they were investing in a profitable sports beverage company when, in reality, he was using their money as a personal slush fund for his lavish lifestyle,” U.S. Attorney Benjamin Glassman said. “His ongoing and systematic deception also included stealing millions of dollars of additional funds. Not only did Foster betray the trust of his clients who believed he would act in their best interest, but he also used his accounting expertise to fraudulently report his income and live a virtually tax-free life.”
When OXYWAter went bankrupt, Foster filed on behalf of the company and repeatedly lied in his deposition, authorities also said.
In August, a jury convicted Foster of 16 charges, including wire fraud, money laundering, bankruptcy fraud, tax evasion and filing false tax returns.
In addition to his prison term, Foster must also make nearly $8 million in restitution, including $1.4 million to the IRS.
Click here to follow Daily Voice Elizabeth and receive free news updates.
