Scottsdale Man Admits $23M Music Royalty Scheme

PHOENIX, Ariz. – Jose Teran, 32, of Scottsdale, Arizona, has confessed to a brazen scheme that saw him and an accomplice siphon off $23,400,000 in music royalties from YouTube. Teran pleaded guilty last week to Conspiracy, Wire Fraud, and Transactional Money Laundering, admitting to a years-long operation built on lies and stolen content.

The guilty plea stems from a federal indictment issued November 16, 2021, charging Teran and Webster Batista with a staggering 30 felony counts. According to court documents, Teran and Batista weren’t artists, producers, or anyone legitimately involved in the music industry. They were, simply put, thieves. The pair created MediaMuv L.L.C. as a front to falsely claim ownership of over 50,000 songs on YouTube, allowing them to illegally monetize content they had no right to control.

Teran’s confession details a calculated effort to exploit the YouTube platform. He admitted to conspiring with Batista to submit fraudulent claims, essentially hijacking the revenue streams generated by legitimate artists. The $23.4 million figure represents the fruits of their deception – money stolen directly from those who actually created the music. This wasn’t a case of accidental oversight; it was a deliberate and large-scale criminal enterprise.

The sentencing date is set for June 26, 2023, before United States District Judge Douglas L. Rayes. Teran faces a potentially lengthy prison sentence. He could receive up to five years for the Conspiracy conviction, up to 20 years for Wire Fraud, and another 10 years for Transactional Money Laundering. Furthermore, he is eligible for fines totaling up to $250,000 per felony count. Batista previously pleaded guilty to Conspiracy and Wire Fraud on April 21, 2022.

The investigation was spearheaded by the Internal Revenue Service Criminal Investigation, highlighting the financial complexity of the scheme. Assistant United States Attorneys Raymond K. Woo and Seth T. Goertz are prosecuting the case. This isn’t just about stolen money; it’s about a systematic abuse of the digital content ecosystem, and the DOJ is sending a clear message that such behavior won’t be tolerated.

If you believe you were a victim of this fraud, contact the Victim Witness Section at usaaz.victimassist@usdoj.gov.

CASE NUMBER: CR-21-0955-PHX-DLR

RELEASE NUMBER: 2023-018_Teran

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.

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