According to a recent article from The Guardian, Eugene Hutz, the frontman of gypsy punk band Gogol Bordello, is being sued by guitarist Oren Kaplan for allegedly stealing $500,000 from band. Hutz is being charged with breach of contract, breach of fiduciary duty and unjust enrichment.
Here’s a little background on the story, courtesy of The Guardian:
In 2009, Hutz allegedly took over all of Gogol Bordello’s accounting; thereafter, he began paying himself a salary of more than $130,000 (£85,000), twice as much as any other band-member. Kaplan also claims the singer created new corporations, separate from the band, and transferred over about $500,000 (£330,000) of their cash. Although Hutz referred to these transfers as “loans”, he never paid any interest.
Hutz [took] approximately half a million dollars from the bank accounts of the Gogol Bordello entities and deposited those funds into the accounts of new companies which are wholly owned by Hutz,” the suit alleges. “Plaintiff had no prior notice of, and has never approved any of these illicit self dealing acts.
The situation came to a head last year, when Kaplan left the New York group. He says his accountant discovered Hutz’s money movements, as well as details of Gogol Bordello’s “secret” contract with Coca-Cola, which used one of the band’s songs to promote the Euro 2012 football championships held in Ukraine and Poland.
We’ll keep you guys posted once more details come to light. Gogol Bordello released “Pura Vida Conspiracy” last month through ATO Records.
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