Said guilty plea arrived in December 2025, following an initial indictment in early 2024. DMN was first to break down the criminal complaint in detail; the short version is that the Industry Management Group founder Welch was accused of defrauding Juice WRLD and others by “purporting to manage their finances and instead embezzling the money for himself.”

Previously, the operation’s precise scope (and the amount Welch should be ordered to pay) was the subject of debate; the individual had performed “valuable work for many clients” and was entitled to legitimate compensation, his legal team argued when seeking a lower figure.

He’ll also have to pay a distinct fine of the same amount, for a total of $665,629.52, the judgment shows. That is, of course, a substantial sum – and one Federal Defenders of New York-repped Welch is seemingly unable to cover at present.

According to the judgment, he’ll make a $100 lump-sum payment upfront, and from there, the restitution will be “payable at 15 percent of gross monthly income.”

Additionally, with three years of supervised release to follow Welch’s prison sentence, he’ll be required to provide his “probation officer with access to any requested financial information” and to seek permission to obtain new credit lines “unless he is in compliance with the installment payment schedule,” per the legal document.

Consequently, he reported to FCI Fort Dix (where Diddy is serving his own sentence) on Tuesday.

Also on Tuesday, the aforementioned streaming scammer Michael Smith was sentenced to 18 months in prison after pleading guilty to conspiracy to commit wire fraud. The Billboard-charting artist must forfeit over $8 million as well.

Meanwhile, different music-space criminal cases are receiving comparatively little attention. Last year, one Hank Risan was charged with four counts of wire fraud and accused of pocketing investor capital by allegedly making misrepresentations about “his purported music streaming service,” BlueBeat.

Though groundbreaking developments haven’t materialized in the case to this point in 2026, a bail review hearing is scheduled for next week.

Separately, Pooh Shiesty (and additional defendants, among them the rapper’s father) has been accused of kidnapping and robbing Gucci Mane and two other individuals in an attempt to exit a record contract. The case is tentatively scheduled to head to trial in February 2027.