We exclusively obtained court documents regarding Adore Delano’s lawsuit against Producer Entertainment Group (PEG). The documents are 29 pages long, so we’ve broken it down for you.
According to the court documents filed by Adore Delano’s attorney Kevin A. Landau, Delano alleges that PEG embezzled money from Delano in a number of ways, leaving Delano with only 12% of the money she earned.
4. In short, Adore Delano is a lucrative brand, and has generated over $2,500,000.00 in the past three years alone.
5. Adore, during said period, received less than $300,000.00, a nominal fraction of what he was legally entitled to.
Accusations of stealing from Delano’s live performance fees
When PEG books a drag queen at a local gay bar, they negotiate that 50% is paid up front by the venue, and then the remaining 50% is paid out after the gig is completed.
Delano’s attorney suggests that the first payment was never deposited into the Delano’s account and instead pocketed by David Charpentier, PEG’s founder. Then, Charpentier allegedly took an additional management fee of 20% from the remaining 50%, making his pay out closer to 60% overall.
The documents give an example of how the alleged theft worked:
31. For example, if Noriega was paid $5,000.00, for a show in Chicago, then Manager was to deposit this $5,000.00 into the artist account, allow Noriega to take his $4,000 payment first, and then Manager could take his $1,000.00 commission fee (20%). However, the exact opposite occurred.
32. In reality, if Noriega was paid $5,000.00 for a show, PEG Defendants’ would take 50% of this right off the top. Noriega would never see this money. Then, PEG Defendants’ would deposit the remaining $2,500 into Noriega’s artist account, or the promoter of the show would pay Adore this amount at the performance. However, PEG Defendants’ embezzlement did not stop there.
33. PEG Defendants’ would take an additional 20% commission, but would take this additional 20% from the initial $5,000.00 fee from the show, leaving Noriega with $1,500, from the initial 5,000 fee, reflected as follows: 5,000 (fee for show) – 2,500 (50% off the top) = 2,500 (deposit into artist account) 5,000 *. 2 = 1,000 (additional 20% taken by PEG) leaving 1,500 for Noriega.
Claims of fraudulently added credit card processing fees
Court filings also claim that PEG added expensive and fraudulent credit card processing fees as well. These sometimes would be in excess of $100 per gig, amounting over time to thousands of dollars in unnecessary payments made to PEG.
53. For example, after the vast majority of travel reimbursements, and after every management fee, is a “credit card processing fee.” In general, this credit card processing fee is around 10% of the management fee claimed, however, sometimes, the credit card processing fee is in excess of 10%. For example, on May 23, 2014, a $700 management fee is claimed, however, immediately below the management fee, is an additional $122.62 credit card processing fee; see also, June 6, 2014, where a management fee of $800 is claimed, and immediately below an additional $85.14 credit card processing fee is claimed. Hundreds of these credit card processing fees have been claimed in the accounting statements, which are blatantly fraudulent.
78. As set forth more fully above, Plaintiff has identified upwards of $1,000,000.00 that is specifically identifiable and segregated and that was embezzled and converted by PEG Defendants’, namely, including but not limited to: specific wire transfers that were wrongly taken out of Plaintiff’s accounts; 50% of the money for shows Adore performed in, which were never deposited in his proper bank account, for which he solely controlled; unwarranted management fee withdrawals; travel and hotel expenses and travel reimbursements; 100’s of completely unwarranted credit card processing fees; unwarranted compensation from album revenues.
Alleged stolen profits from Delano’s album, Till Death Do Us Party
Documents also suggest that Delano was paid a lot less than she what was owed for her album sales.
109. The total album sale revenues stated for Adore’s first album is $119, 065.77 in the 2014 accounting statement. Adore’s earnings for this album is stated as $23,813.15 in the 2014 statement.
110. However, consistent with PEG Defendants’ theft, PEG Defendants’ are stated as taking a $23,815.15 commission. 20% of $23,815.15 is not $23,815.15, it is $4,763.03.
That part is confusing, but what they are saying is that if Delano made $23,813.15 from album sales, than PEG should have made 20% of that which is $4,763.03. Instead, they took away the same amount of money Delano did.
Secret contracts with people who worked on Delano’s album
Next, the documents name the other defendants in the case who are being sued, namely, people who worked with Delano on her album. Delano’s attorneys claim that she never knew these individuals were to receive 50% from any and all revenues made from her album, in a contract PEG made without her knowledge.
117. In an accounting statement produced by PEG Defendants’, dated December 13, 2016, Ashley, Tomas and Shiny are indicated as receiving 50% from any and all revenues from Adore’s albums, including, all records sales, sales from individual songs/I-tunes, and streams, after PEG’s 20% commission.
118. This statement came as a shock to Plaintiff, and as an utter betrayal
122. As such, consistent with the PEG Defendants’ other theft, 90% of all revenues generated by Adore’s album was taken by PEG Defendants’ and Killingsworth Defendants. Ninety percent! The other 10% was paid to the Killingsworth Defendants’ to pay for production costs and studio time, which Defendants illegally withdrew from Plaintiff’s bank account.
123. As such, to date, Adore has not been paid any money from the sale of his albums and songs. Instead, similar to his earnings from concerts and performances, all revenue from his albums and songs has been taken, stolen, embezzled and divided up between the Killingsworth Defendants and Defendants’ PEG and Charpentier.
We have reached out to PEG, Delano, and her lawyers again for an updated comment. We have yet to hear back.
To read Adore Delano’s lawsuit court documents, visit here.