Federal COVID relief funds, intended to support struggling arts groups during the pandemic, were misused by some of the music industry’s wealthiest stars to enrich their luxury lifestyles, according to an investigation by Business Insider.
Celebrities, including Lil Wayne, Chris Brown, and members of Alice in Chains, received millions in taxpayer-funded grants from the Shuttered Venue Operators Grant (SVOG) program while their crew members received a fraction of the funds.
The SVOG program, introduced in 2020, was pitched as a lifeline for independent venues and middle-class artists whose work was upended by pandemic restrictions.
Senator Chuck Schumer, a key advocate, called it a way to ensure that “young artists” and “middle-class people” could survive financially. However, internal records and interviews reveal widespread misuse of the program’s funds.
Music stars use Covid funds for luxury expenses
According to Business Insider, Rapper Lil Wayne, whose real name is Dwayne Carter Jr., received an $8.9 million grant through his touring business.
While the money was intended to support live entertainment, records show Wayne spent over $1.3 million on private jets, $460,000 on high-end clothing, and $175,000 on expenses for a music festival promoting his marijuana brand, GKUA. An additional $15,000 went toward flights and hotel stays for women with no clear connection to his tours.
Chris Brown also used grant money for questionable purposes. His company, CBE Touring, received $10 million, with $5.1 million going directly to Brown. He charged taxpayers $80,000 for his 33rd birthday party, which featured an LED dance floor, body-painted models, and luxury amenities.
Brown also spent $24,000 transporting his tour bus to Tulum, Mexico, where he filmed a music video but did not perform.
DJ Marshmello, whose real name is Christopher Comstock, received $9.9 million. His business manager later confirmed that all the funds went directly to Marshmello as salary. Similarly, Steve Aoki paid himself $1.9 million out of the $2.4 million grant awarded to his company.
Disparities between artists and crews
While celebrities benefited, their crew members received far less. The rock band Shinedown, for instance, allocated $2.5 million of its $8.3 million grant to three members while paying a total of $650,000 to its 15 crew members.
Alice in Chains followed a similar pattern. Singer Jerry Cantrell and two other members received $3.4 million of their $4.1 million grant, while crew members like Scott Dachroeden, a longtime guitar technician, faced financial hardship.
After Dachroeden was diagnosed with cancer, the band circulated a GoFundMe page to help cover his medical bills. The Twitter page said, “He has no health insurance and now cannot work to pay his bills.”
Questions of oversight
The Small Business Administration (SBA), which managed the program, has faced criticism for its oversight. Initially, musicians and their loan-out companies were deemed ineligible for grants. However, an internal memo from December 2021 revealed a reversal of this decision, allowing wealthy artists to qualify. The SBA did not explain this change.
To distribute funds quickly, the SBA relaxed anti-fraud measures. Fraud checks were postponed until after funds were disbursed, leaving $6 billion in grants under review for compliance. A spokesperson defended the agency’s actions, stating that credible evidence of fraud is investigated thoroughly in partnership with law enforcement.
Still, insiders claimed the agency prioritized speed over scrutiny, with one employee saying, “They were just trying to get money out. If it was fraudulent, if it was not eligible – whatever.”
Fallout and public Reaction
According to Business Insider, one manager who lobbied for the program — and asked to remain unnamed due to the issue’s sensitivity — said, “It never crossed my mind that we should be trying to get this money for my artists.”
Last year we discovered a COVID relief fund meant for struggling arts venues had given $200M+ to wealthy musicians. But we didn’t know HOW they spent it — until now. We got the literal receipts, with @TheNewsHam and @ByKLong reviewing thousands of pages of accounting docs pic.twitter.com/jvJjAlIv6J
— Jake Swearingen (@JakeSwearingen) December 18, 2024
Brandy Hotchner, who runs the Arizona Actors Academy, said the funds saved her school during the pandemic. She called the misuse by celebrities “a disappointment” that could tarnish public trust in government support for the arts.
Business Insider reports that the SBA has recovered $43 million in misspent COVID relief funds but has yet to assign staff to review the remaining cases. Critics argue the program’s design enabled abuse, leaving many workers it was meant to help behind.
The findings highlight the challenges of balancing rapid relief with effective oversight, raising questions about accountability in future government programs.
