Most of our celebrity-crime commentary features an artist accused of a crime. This one flips the script: the musician is the victim. A New Jersey man who served as R&B star Ne-Yo’s business manager was just sentenced to more than seven years in federal prison for draining millions from the singer’s accounts. It is a cautionary tale that has nothing to do with fame and everything to do with a problem any Texan can face — being defrauded by the very person they trusted to protect their money. Here is how a betrayal-of-trust financial crime like this would be handled under Texas law in Frisco and the greater DFW area.
What Happened
According to reporting from the Associated Press, Kevin Foster, who served as business manager for Ne-Yo (real name Shaffer Smith), was sentenced in Ohio to more than seven years in prison for defrauding the singer in a sports-beverage scheme. Prosecutors said Foster convinced Ne-Yo to invest $2 million in a company called OXYWater, then invested an additional $1.5 million of Smith’s money without his consent. He was also accused of defrauding singer Brian McKnight by withdrawing money from his account without authorization. Foster was convicted on 16 counts including wire fraud, money laundering, and tax charges, and prosecutors contended he spent the money on a personal driver, expensive suits and jewelry, professional sports season tickets, and Super Bowl tickets.
You can read the underlying reporting via the Associated Press.
This article is L & L Law Group’s general legal commentary on a nationally reported news story. We do not represent anyone involved, we have no inside knowledge of the facts, and nothing here is a statement about any person’s guilt. Everyone charged with a crime is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The Trusted-Insider Fraud Problem
Business managers, bookkeepers, financial advisors, and office managers occupy positions of trust. When someone in that role secretly diverts a client’s money, the conduct is not a simple business dispute — it is theft, and often several overlapping crimes at once. In Texas, a case like this would typically involve theft, misapplication of fiduciary property, money laundering, and possibly securing execution of a document by deception. Because these schemes usually move money through banks, wire transfers, and email, they frequently draw federal charges too.
How Texas Treats Theft and Fiduciary Misconduct
The core offense is theft under Texas Penal Code § 31.03. Texas grades theft by the dollar amount involved, and at the levels alleged in a multimillion-dollar scheme it would be a first-degree felony — the same felony level as many violent crimes, punishable by 5 to 99 years or life. When the money belongs to a client and is handled by someone acting as a fiduciary, prosecutors can also charge misapplication of fiduciary property under Texas Penal Code § 32.45, which specifically targets a person who deals with property they hold in a fiduciary capacity in a way that involves substantial risk of loss to the owner. That statute is also graded by amount, reaching first-degree-felony territory for the largest sums.
Money Laundering and Document Fraud
Moving or concealing the proceeds can add a money-laundering charge under Texas Penal Code § 34.02, which is graded by the value of the funds and mirrors the federal approach. If a defendant tricked a victim into signing investment paperwork or authorizations, Texas Penal Code § 32.46 — securing execution of a document by deception — may also apply. And because a scheme like this almost always crosses state lines through banks and the internet, federal wire fraud under 18 U.S.C. § 1343 (up to 20 years per count), federal money laundering under 18 U.S.C. § 1956, and federal tax charges commonly stack on top of the state exposure.
What a Defense Actually Looks Like
An indictment or even a conviction on appeal does not mean every theory the government advances is airtight. In financial-trust cases, the contested issues usually include:
- Authorization and intent. Fraud requires proof that the defendant acted with intent to deceive or deprive. A genuine, authorized (if unwise) investment decision is not a crime, and the line between a bad business call and theft is often the heart of the case.
- The dollar figures. Loss amounts drive both the felony grade and the sentence. They are routinely disputed, recalculated, and reduced, especially where legitimate expenses and repayments are mixed in.
- The paper trail. These cases live and die on records. How financial data was gathered, and whether a defendant’s statements were lawfully obtained, can reshape the case.
- Restitution and civil overlap. Some money disputes belong in civil court; establishing that a matter is a contract dispute rather than a crime can be pivotal.
Frequently Asked Questions
Is it a crime in Texas for a business manager to misuse a client’s money?
Yes. Beyond ordinary theft under Penal Code § 31.03, Texas has a specific offense — misapplication of fiduciary property under § 32.45 — aimed at people who mishandle property entrusted to them in a fiduciary capacity.
How serious are these charges?
Very. At multimillion-dollar amounts, Texas theft and fiduciary-misapplication charges reach first-degree-felony level (5 to 99 years or life). Parallel federal wire-fraud and money-laundering counts can add up to 20 years each.
What should I do if I suspect my advisor is stealing from me?
Preserve records, stop further access to your accounts, and consult counsel before confronting anyone. Both criminal reporting and civil recovery may be options, and the earliest steps often shape what can be recovered.
Can a case like this be resolved with restitution?
Restitution frequently plays a role in sentencing and in negotiated resolutions, but paying money back does not automatically erase criminal liability. How and when it is offered matters.
How L & L Law Group Can Help
Financial-trust cases are document-heavy and high-stakes on both sides of the courtroom — whether you are accused of a white-collar offense or you are the person who was defrauded and need to understand your options. If you are facing an investigation or charges involving alleged theft, fiduciary misconduct, fraud, or money laundering in the Frisco or greater DFW area, the earliest decisions often matter the most. Our firm helps clients understand the charges, protect their rights during investigations, and build a defense focused on intent, authorization, and the reliability of the government’s evidence. Call L & L Law Group at (972) 370-5060 for a confidential consultation.
By Reggie London and Njeri London.