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The auction of Damon Anthony “Dame” Dash’s stake in Roc-A-Fella Records now has a new twist as New York State claims he owes them millions in back taxes.
The legal battle over mogul Dame Dash’s share in Jay-Z’s Roc-A-Fella Records has another added twist, as a motion was filed in a federal court in Manhattan by New York’s Department of Taxation & Finance on Wednesday (August 21). According to reports, the motion was for the department to legally intervene in proceedings leading up to an auction of Dash’s share in the record label that will be conducted by the United States Marshalls Service in a Manhattan hotel on August 29. They claim that Dash owes $8.7 million in back taxes and penalties on income that he earned between 2005 and 2018.
“To date, the Department has been unsuccessful in its efforts to collect the unpaid New York State tax debt owed by Dash,” wrote attorneys for the state in the filing. “Intervening in this matter may be the Department’s only opportunity to collect some of the unpaid taxes Dash owes to New York.” The motion adds more complexity to the situation, as the share held by Dash (which totals 33.3% interest) is being auctioned off to fulfill a judgment in a lawsuit won by film producer Josh Webber. Webber sued Dash over a failed movie partnership and was granted $823,000.
However, the New York City’s Department of Social Services will receive the first share of proceeds from the auction as Dash owes $145, 096 in unpaid child support.
The tax department made it clear that its filing was not to supersede the social services department, but it also said that it had a lien against Dash’s Roc-A-Fella proceeds for over a decade. Jay-Z and Kareem “Biggs” Burke had tried to stop the auction from proceeding but were denied in February.
The opening bid of the auction will begin at $1.2 million, and Dash will receive any monies after the judgments are fulfilled, with his lawyer Natraj Bhushan claiming they “expect a robust auction with bids entering the several millions if not higher.” What is clear is that Mr. Damon Dash is allergic to responsibility,” Webber’s attorney Chris Brown stated in an interview. “I’m more interested in learning if New York State will file tax evasion charges against him or if he will be arrested at the upcoming auction. That is what I want to find out. Just my opinion.”