Ne-Yo’s Manager Gets 7 Years for $8M Scam

COLUMBUS, OH – Kevin R. Foster, 43, of Montclair, N.J., is trading bespoke suits for an orange jumpsuit. The former business manager to musical artists was slammed with an 89-month prison sentence today in U.S. District Court for orchestrating a brazen $7.9 million scheme to fleece his celebrity clients and evade taxes. Foster, who ran Foster & Firm, Inc., wasn’t just managing money – he was allegedly pilfering it.

The sentencing follows a jury conviction in August 2018 on a staggering 16 charges: wire fraud, money laundering, bankruptcy fraud, tax evasion, and filing false tax returns. U.S. Attorney Benjamin C. Glassman, IRS Criminal Investigation Acting Special Agent in Charge William Cheung, and FBI Cincinnati Division Special Agent in Charge Todd A. Wickerham jointly announced the sentence handed down by Chief U.S. District Judge Edmund A. Sargus, Jr. This wasn’t a simple oversight; it was a calculated, multi-faceted criminal enterprise.

The roots of this case reach back to the failed sports beverage “OXYwater” and its parent company, Imperial Integrative Health Research and Development. Imperial’s founders, already convicted of fraud in 2015, lured investors with false promises. Foster, leveraging his position, induced Shaffer Smith, known as Ne-Yo, to invest $2 million in the failing venture. But it didn’t stop there. Without Smith’s knowledge, Foster funneled an additional $1.5 million of the singer’s funds into OXYwater and then illegally secured $1.4 million in lines of credit, forging Smith’s signature. Brian McKnight was also a target.

Foster wasn’t just stealing; he was living large on his victims’ dime. The court revealed a lifestyle fueled by stolen funds: a fleet of luxury vehicles – a Rolls-Royce, Bentley, Jaguar, and Mercedes – a personal driver, designer suits and jewelry, courtside seats to the New York Knicks, New York Giants season tickets, and even Super Bowl access. He desperately propped up Imperial with the stolen money, buying time as the company spiraled toward receivership. Then, in a final act of audacity, he filed for bankruptcy on behalf of Imperial, falsely claiming to be the majority owner and lying under oath during the deposition.

The deception extended to his own tax returns. Foster failed to report the millions he’d siphoned from Ne-Yo and McKnight, and falsely claimed bogus deductions to further minimize his tax liability. “Foster deceived his victims into believing they were investing in a profitable sports beverage company when, in reality, he was using their money as a personal slush fund for his lavish lifestyle,” stated U.S. Attorney Glassman. “His ongoing and systematic deception also included stealing millions of dollars of additional funds.”

IRS-CI Acting Special Agent in Charge Cheung put it bluntly: “Today’s sentencing marks the successful end of an investigation that uncovered an investment fraud scheme laced with a web of financial lies that generated millions of dollars through false promises and deceit.” Foster will also be required to pay over $7.9 million in restitution. The message is clear: exploiting trust and manipulating finances won’t pay – it will land you in federal prison.