Skales and his manager, Osagie Osarenkhoe was arrested by the Nigerian Police after being accused of fraudulently diverting N13.3m belonging to the ariste’s record label, Baseline Records.
It has been revealed that the two slept in police cell after the arrest. The arrest came after Baseline Records wrote a lengthy petition to the Assistant Inspector General of Police, Zone 2 Zonal Command, Onikan, Lagos, claiming that Osagie and Skales committed fraud against the company with monies totalling N13,374,000.
The petition reads:
“1. THEFT OF COMPANY MONIES EARNED BY SKALES FROM MARCH-APRIL 2016
The Company noticed that although Skales was listed as performing at various concerts, shows, tours and other events, none of the monies received from these events was remitted to the Company. In this regard, the Company invited Skales and his manager Teresa Osagioduwa Osarenkhoe to various meetings seeking an account and a reconciliation. At these meetings, both Skales and his manager Teresa Osagioduwa Osarenkhoe insisted that the events in question were not paid events and as such there were no monies to remit.
“These dubious activities continued for a period of 12 (twelve) months wherein the Company was fraudulently deprived of its legitimate earnings by the said Teresa Osagioduwa Osarenkhoe as payments made for performances were paid directly into her account in violation of the procedure set up for payments at the beginning of the Contract. The Company in March of 2016 decided to catalogue some of the paid shows, performances, concerts and tours wherein Skales performed and the monies were fraudulently converted for personal use by the said Teresa Osagioduwa Osarenkhoe.
“Please find below a list of said performances which only covers the period from 3rd March 2016 to 1st May 2016.
3rd March, 2016- Malaysian private party- $6,000
8th April, 2016- MTN NOISELESS PARTY ENUGU- N750,000
16th April,2016- AFRICA NIGHT 2016 AFRO-FUSION AFFAIR UNIVERSITY OF ALBANNY- $6,000
1st May, 2016- Private event at Thisday Dome- N1,000,000
7th May, 2016- AFRICAN MUSIC FESTIVAL MOSCOW- $6,000
“By the Company’s estimation, from the aforementioned events, Teresa Osagioduwa Osarenkhoe has fraudulently converted the sum of N7,474,000 from this brief period without accounting to the Company or making payments first into the Company’s accounts as stipulated in the Contract. This is without factoring all the other performances, tours and shows where no remittance was made from the period January 2015 to April 2016.
“In order to properly document this fraud and catch Teresa Osagioduwa Osarenkhoe in the act of theft, the Company created an email address, and sent an email to Teresa Osagioduwa Osarenkhoe requesting the performance of Skales at an event in California on the 2nd June, 2016. In the email communication, Teresa Osagioduwa Osarenkhoe requested the sum of $5,000 (five thousand US dollars) for the performance as well as one business class ticket, one economy class ticket and two hotel rooms in a 4-star hotel. (please find enclosed here with the email communication between Skales and Femi George with respect to the said performance) On 18th May, 2016 the first tranche of $2,500 (two thousand five hundred US dollars) representing 50% (fifty percent) of the performance fee demanded by Teresa Osagioduwa Osarenkhoe was wired into the following account:
Bank of America.
Name: Teresa Osagioduwa Osarenkhoe.
Account Number: 483063945907
“Subsequent to the transfer of the money, our Samuel Gbemileke Samuel telephoned the said Teresa Osagioduwa Osarenkhoe requesting for an account of all monies received by Skales for performances and tours for the month of May. Teresa Osagioduwa Osarenkhoe insisted that there had been no paid performances for Skales during the period in question.
2. THEFT OF THE SUM OF N5,000,000 (Five million naira) BEING PAYMENT FOR MTN PULSE
“The Company in 2015 entered into an agreement with Upfront and Personal, for the engagement of Skales to appear in TV commercials, billboards websites and other social media on behalf of MTN Pulse. As per the terms of the agreement, Upfront and Personal was to pay to the Company the sum of N5,000,000 (five million naira) in two tranches of N2,500,000 (two million five hundred thousand naira each).
The said Teresa Osagioduwa Osarenkhoe representing that she was authorized by the Company obtained the sum of N5,000,000 (five million naira) due to the Company without being so authorized. Teresa Osagioduwa Osarenkhoe has failed after repeated demands to repay the said N5,000,000 (five million naira) fraudulently obtained.
Given the above circumstances, the Company believes that a fraud has been committed against it by Teresa Osagioduwa Osarenkhoe.”
This is how Daddyfreeze reacted. He posted this on his Instagram page: “According to @wale_ewedemi an inside source for Baseline records, they have both been remanded in Police Custody after confessing to various charges of fraud and diversion of Baseline Records funds
“They are currently assisting the Police in unraveling the extent of the fraud. Running into tens of millions of naira.
“At the inception of the contract, he was given a fully furnished luxury apartment in Lekki in a gated estate, with a brand new customized SUV. And a multimillion Naira sign on Fee.
The record label also gave him a free hand to select and run his brand, supported by a multimillion naira corporate expense account.
“Skales behavior has reduced the appetite of the Record label to assist other young talents to achieve their full potential.
“@kaylahoniwo and I talked about this on @coolfmlagos today on the #RoadShow.
Many of these artistes are from the hood. One small hit and they upgrade their transportation from Marwa and Molue to a 2006 Range Rover or G wagen with 2014 bodykit, then they upgrade their housing from mushin or Aj city to LEKKI phase one…. But the problem is they don’t upgrade their minds!!! They do business with intelligent and witty entrepreneurs while using their ‘Molue mentality’, not realizing that a contract is a contract and GRA-GRA cannot break it! The other day DJ Zeez was asked to pay his record label N21m, then the vector issue, then Runtown was issued a court injunction restraining him from performing and now skales allegedly sleeping inside police cell!!
“Upcoming artistes abeg make una learn how to read book, no be everything be swag, no be everything be gra-gra! Please don’t jump and sign your life away for a plate of porridge!
“UPGRADE YOUR MINDS!!!! Still trying to get Osagie and Skales for their own side of the story so expect more updates tomorrow…. In the meantime remember to read whatever u sign o! And make sure u have a good lawyer…..”