GOJ drawn into out of court talks with accuser, US based Music Licensing Inc.

Durrant Pate/Contributor

In an Our Today news follow-up, the Jamaica Stock Exchange (JSE) and stock brokerage and investment firm Cumax Wealth Management are at the centre of bribery, extortion, wire fraud and mail fraud allegations being levelled by Music Licensing Inc. (MLI) and Jake P. Noch Family Office, LLC.

The allegations are contained in at least three separate US Securities and Exchange Commission (SEC) filings by American-based MLI, also known as Pro Music Rights and its principal officer, Jake P. Noch, which Our Today has received a copy of. The filings by MLI, which is a diversified holding company and the fifth public performance rights organization and Noch were made on January 30, 2024, February 1, 2024 and February 8, 2024. 

In one of the filings, MLI names a number of principal officers at both JSE and Cumax in which it intends take out a lawsuit against, accusing them of various improprieties, including attempted extortion for bribes, misappropriation of funds, fraudulent representations, wire fraud and mail fraud.

Planned JSE listing botched

Regarding the bribery allegations, MLI claims it was subjected to attempted extortion for bribes, which it has refused to pay, citing that the allegations against the JSE and Cumax of misappropriation of funds, making fraudulent representations, engaging in wire and mail fraud, caused its planned listing on the Jamaican Stock Market not to move forward.

As such the company, which has licensees with notable companies such as TikTok, iHeart Media, Triller, Napster, 7Digital, Vevo, and many others is claiming heavy losses. According to MLI, “the company intends to hold the mentioned parties liable for any and all damages incurred. The Company plans to file a lawsuit in a Federal court within the United States.” 

In its filing, MLI says it “does not believe that the lawsuit will be material to its operations. Additionally, the company does not consider the non-listing on the JSE to be materially affecting the company.”

One day after MLI’s January 30, 2024 allegations and threat of a lawsuit, the JSE quickly fired back completely refuting its allegations saying, “the allegations contained in the filing are completely spurious and without foundation…. The JSE wishes to make clear that we intend to take all the necessary steps with the relevant agencies of the United States Government to investigate and take action in respect of the filing that has been made by MLI with the SEC given that such filing is false, defamatory and would have the effect of misleading investors.”

MLI fires back

In its response to the JSE rebuttal of its allegations, MLI went further in its February 1 filing asserting, “in response, the Jamaican Stock Exchange has published a statement (January 31, 2024) characterized by Music Licensing, Inc. as defamatory. This statement is perceived as an attempt to redirect and distract the general public from the allegations Music Licensing, Inc. has levied against them.”

MLI says it maintains its commitment to ethical practices and adherence to the Foreign Corrupt Practices Act in the United States, arguing “the JSE’s publication of a defamatory statement is an effort to sway public perception away from the serious allegations raised against them. Further developments in this matter will be addressed in accordance with legal proceedings and the regulatory framework governing such disclosures.”

BIT negotiations sought

In its February 8, 2024 filing, MLI advises the SEC of its Request for Negotiation under the Bilateral Investment Treaty (BIT) between the United States and Jamaica. MLI, represented by its legal team, initiated a dialogue with the Jamaican government under the provisions of the treaty between the US and Jamaica.

According to MLI, “The purpose of this engagement is to address issues arising from challenges faced by the company in its investments in the Jamaican Stock Exchange. The Company, (MLI) a United States-based entity, has been an active foreign investor in Jamaica’s music and entertainment sector. 

The outcome of these negotiations may have a material impact on the Company’s financial condition and results of operations. Any resolution reached could affect the Company’s future investments and operations in Jamaica. 

Pointing out that MLI is committed to resolving this matter in a manner that is fair and equitable for both parties in accordance with the principles established by the United States-Jamaica BIT, MLI has committed to providing updates on significant developments related to this legal matter as they occur.