Death Row Pleads Guilty To Tax Evasion
Death Row Records entered a guilty plea Tuesday to federal charges that the rap label failed to file a corporate tax return on income of nearly $826,000 for its 1996 fiscal year, Billboard Bulletin reDeath Row Records entered a guilty plea Tuesday to federal charges that the rap label failed to file a corporate tax return on income of nearly $826,000 for its 1996 fiscal year, Billboard Bulletin reports. The plea agreement was signed by Death Row VP Marion Knight Sr., father of label president Marion "Suge" Knight Jr. The agreement calls for Death Row to pay all taxes and penalties due, plus a fine of $100,000; the label also agreed to a five-year term of organizational probation.
In a related development, The Los Angeles Times, citing unnamed law-enforcement sources, reported yesterday (Jan. 9) that a long-running investigation of Death Row by federal, state, and local authorities has been shut down. On Monday, Assistant U.S. Attorney Ronald Cheng sent a letter to Suge Knight's attorney, David Chesnoff, stating that the government does not intend to file money-laundering or additional income tax charges against the Death Row president.
The four-year Death Row probe -- which had involved the empaneling of a federal grand jury -- produced no evidence of wrongdoing on the label's part beyond the tax charges that came to light this week.