Mahan told law enforcement that he reached out to Live Nation to tell them that he planned to auction the recordings or hand them over to them for a $100,000 "storage fee." He continued to say that they had settled on a fee of $75,000.
When Mahan went to the storage facility on Friday (April 18) where the recordings -- which are valued between $15-$20 million -- were being kept, he was reportedly detained by LAPD for questioning, but not arrested. According to Mahan, LAPD were contacted by Jay Z ahead of time.
The LAPD will remain in possession of the recordings until a judge decides who has rightful ownership.
Sources tell TMZ that the Bevery Hills PD are further investigating extortion allegations against Mahan, while Jay Z's team has filed a grand larceny complaint with the NYPD. Jay Z's representatives could not be reached at press time.