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Skales’ Manager Accused of Fraud of Over N13 Million by Baseline Records | She Responds

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Osagie Osarenkhoe, also known as This Metal Chic, has been accused of fraud by Baseline Records, home to Skales and Aramide.

Osagie, currently managing Skales, has been accused by the record label of stealing the sum of N13,374,000 in the past 12 months. The record label has released a length petition addressed to the Inspector General of Police and right now Osagie is at the Police Station as they try to sort things out.

The petition reads in part:

On the 11th of July, 2014 the company entered into an Artiste and Record Company Multiple Right Agreement (the “Contract”) between itself and Raoul Njeng Njeng (also known as Skales) for the provision by Skales of exclusive recording services to the Company for a period of 5 (five) years.

Under the terms of the Contract, Skales assigned to the company all copyright and other rights or interests throughout the world in all sound recordings made by Skales prior to or during the term of the Contract. The Contract further provided that the Company shall be entitled to 70% (seventy percent) of the gross receipts received by Skales from performance and tours and brand endorsements during the term of the Contract.

Skales introduced Teresa Osagioduwa Osarenkhoe to the Company as his manager and stated her duties to include inter alia tour bookings, strategy and promotion. In order to avoid a situation where accounts will be disputed, the Company set in place a procedure for the remittance of monies received from performances, tours and brand endorsements involving Skales. The procedure implemented at the beginning of the Contract was the payment of all monies received in pursuance of performances and endorsements into the Baseline account, whereupon the 30% due to Skales would be transferred to his (Skales’) account after the deduction of expenses. The above procedure was implemented at the beginning of the Contract and monies were remitted in the manner stated above. The Company however noticed that rather than remit monies to the Company account as agreed, Teresa Osagioduwa Osarenkhoe falsely dictated to event promoters that monies were to be paid to her personal accounts.

In all the circumstances where monies were paid to Teresa Osagioduwa Osarenkhoe’s personal accounts, these monies were never repaid to the Company.

The Company noticed that although Skales was listed as performing at various concerts, shows, tours and other events, none of the monies received from these events was remitted to the Company. In this regard, the Company invited Skales and his manager Teresa Osagioduwa Osarenkhoe to various meetings seeking an account and a reconciliation. At these meetings, both Skales and his manager Teresa Osagioduwa Osarenkhoe insisted that the events in question were not paid events and as such there were no monies to remit. These dubious activities continued for a period of 12 (twelve) months wherein the Company was fraudulently deprived of its legitimate earnings by the said Teresa Osagioduwa Osarenkhoe as payments made for performances were paid directly into her account in violation of the procedure set up for payments at the beginning of the Contract. The Company in March of 2016 decided to catalogue some of the paid shows, performances, concerts and tours wherein Skales performed and the monies were fraudulently converted for personal use by the said Teresa Osagioduwa Osarenkhoe.

By the Company’s estimation, from the aforementioned events, Teresa Osagioduwa Osarenkhoe has fraudulently converted the sum of N7,474,000 from this brief period without accounting to the Company or making payments first into the Company’s accounts as stipulated in the Contract. This is without factoring all the other performances, tours and shows where no remittance was made from the period January 2015 to April 2016.

In order to properly document this fraud and catch Teresa Osagioduwa Osarenkhoe in the act of theft, the Company created an email address, and sent an email to Teresa Osagioduwa Osarenkhoe requesting the performance of Skales at an event in California on the 2nd June, 2016. In the email communication, Teresa Osagioduwa Osarenkhoe requested the sum of $5,000 (five thousand US dollars) for the performance as well as one business class ticket, one economy class ticket and two hotel rooms in a 4-star hotel. (please find enclosed herewith the email communication between Skales and Femi George with respect to the said performance) On 18th May, 2016 the first tranche of $2,500 (two thousand five hundred US dollars) representing 50% (fifty percent) of the performance fee demanded by Teresa Osagioduwa Osarenkhoe was wired.

The Company in 2015 entered into an agreement with Upfront and Personal, for the engagement of Skales to appear in TV commercials, billboards websites and other social media on behalf of MTN Pulse. As per the terms of the agreement, Upfront and Personal was to pay to the Company the sum of N5,000,000 (five million naira) in two tranches of N2,500,000 (two million five hundred thousand naira each). The said Teresa Osagioduwa Osarenkhoe representing that she was authorized by the Company obtained the sum of N5,000,000 (five million naira) due to the Company without being so authorized. Teresa Osagioduwa Osarenkhoe has failed after repeated demands to repay the said N5,000,000 (five million naira) fraudulently obtained.

Given the above circumstances, the Company believes that a fraud has been committed against it by Teresa Osagioduwa Osarenkhoe. The Company hereby appeals to your good office to investigate this matter in the interest of fairness and justice.

Osagie has also spoken out about the ongoing case via Twitter:

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31 Comments

  1. nwa nna

    May 31, 2016 at 2:56 pm

    Man, this was an awful contract signed by skales to begin with.. Just my opinion

    • Zee

      May 31, 2016 at 3:24 pm

      as in i am just thinking, Skales get to receive mere 30% for all his talent????

    • wow

      June 4, 2016 at 10:19 pm

      That’s 30% AFTER deducting expenses. Also copyright of recordings before and after the contract. Contract is pure 419 and should be struck down but unfortunately these types of recording contracts are standard all over the world smh

    • Person

      May 31, 2016 at 3:51 pm

      As in. Rights to all music made PRIOR TO and DURING the duration of the contract? Why don’t these artists get a lawyer to read these things?

    • Mr. Egghead

      May 31, 2016 at 4:11 pm

      That’s the way the industry is.
      Why do think almost every Nigerian star has a personal record label?

  2. Corolla

    May 31, 2016 at 3:33 pm

    First of all, Skales contract was shitty, but he signed it and should have operated within the said contract. It seems like Osagie and Skales were both responsible for diverting the funds, so I don’t get why the company is coming for Osagie only. I mean, would Skales have been performing these “side gigs” and not received money from Osagie?

    • AyWire

      June 1, 2016 at 1:36 pm

      This is because the bearer of the fraud account is Osage, skales has not been directly inplicated. But it is glaring that skales is aware of all the diversion.this cannot stand regardless, if it cant be proved he was involved

  3. jide benson

    May 31, 2016 at 3:38 pm

    Lets be real, he signed the contract with his eyes opened, whether good or bad. I dont understand why he needs to defraud the company that invested so much in him… naija artistes sha

    • wow

      June 4, 2016 at 10:25 pm

      Don’t be too sure a lot of American music documentaries show that these singers are not given proper advice and sometimes encouraged by the label not to bother with a lawyer. Not everyone can see through the legalese. Tlc’s contract was worse they got 7 % album sales MINUS expenses

  4. lovette

    May 31, 2016 at 3:48 pm

    nawa so the girl dey tief tief

  5. marc

    May 31, 2016 at 3:54 pm

    70 percent of all your earnings for 5 years? Dang! What a contract. And after your 30 percent is calculated, they deduct expenses from the 30 percent and so Skales and Manager gets the net, Then they post photos of Lekki houses and SUVs in the background…….With Skales in it while the gullible fans and aspiring artistes believe you are living the good life. “Truly there is no Biz like showbiz”

    • kemi

      May 31, 2016 at 5:27 pm

      lol 1000 likes for your comment. The truth is 90% of them are broke and they know this amongst themselves. Can you believe a whole Tiwa Savage does not have 45 million in her account? They all live above their means in order to keep up with the hype and it is sad!

    • CovertNigerian

      May 31, 2016 at 7:12 pm

      I don’t know how you confirmed her account balance, but did it occur to you that as a smart woman she may not have that much money lying fallow in her account and earning miserable interest because she has wisely invested in more productive ventures? Simply having money sitting in your bank account so that you can boast a large account balance is a show of financial naivety.

  6. jide benson

    May 31, 2016 at 4:54 pm

    Osagie Na Thief joor.. lets say the truth… but why is skales free.

  7. Adelaide

    May 31, 2016 at 4:59 pm

    I don’t even care about anything but can you look at that contract????? 70% not even 50-50 sef, I am pretty sure he had a better deal at E.M.E records. I hope they sort it out sha

  8. Ariere

    May 31, 2016 at 5:18 pm

    Slavery still exists. The evidence is right there in Skale’s contract. Ur not an Artiste, Ur A Slave. Gosh!

  9. hezekina pollutina

    May 31, 2016 at 6:24 pm

    the artist formerly known as skales…. e no easy sha….

  10. Anon

    May 31, 2016 at 7:36 pm

    These baseline people are thieves. Why would you take 70% of a human beings earnings? They should be the ones arrested and not osagie.

  11. Anon

    May 31, 2016 at 7:38 pm

    They deserve whatever they got even though i feel they dont have any business with the manager.Sebi its the artist that signed contract.

  12. el patron

    May 31, 2016 at 8:55 pm

    baseline 70%, skales 20%, osagie 10% or where is osagie getting paid from?
    the way she, banky and captain defrauded wizzy with slave contract..taking advantage of these guys..
    God has delivered wizzy..
    Skales God will deliver you one day.

  13. bikky

    May 31, 2016 at 9:34 pm

    So why is Osagie arrested! Baseline is totally baseless

  14. Uche

    May 31, 2016 at 9:38 pm

    Scales signed the contract and is directly involved with Baseline so why was Osagie the one getting all the negative attention

  15. Tinuke

    May 31, 2016 at 9:39 pm

    Sad, Baseline, you are slave traders and thieves! God will not forgive you for tying a human being’s life like this

  16. SimplyAmazing

    May 31, 2016 at 9:49 pm

    I don’t get how you guys are surprised at the 70/30 deal. That’s how all these record labels rob these artists. That’s the deal most of them get not just skales.

  17. mr man

    May 31, 2016 at 10:12 pm

    For everyone talking about the deal, this is almost standard for artistes and labels in the naija music business. Go ask Sean Tizzle make he yarn you….lol. But we need to hear from Osagies side …and Skales too

  18. yusuf

    May 31, 2016 at 10:36 pm

    Men this skales is really an ingrate. Even at 70/30 be loyal to the company they spent money on your career,

  19. Sanity

    May 31, 2016 at 10:45 pm

    First of all these contracts have been standard since forever……please ask Kenny, d1 and tuface. Meanwhile guys ask yourselves who takes all the risk…

  20. Upcoming Art

    June 1, 2016 at 2:19 am

    With the hardship in dis country i will collect that deal with joy, Skales was almost dying when he got that deal. Let’s face fact Osagie did WRONG. It’s sad that she will surely pay for it NO WAY OUT!

  21. Daisy

    June 1, 2016 at 7:23 am

    Get a lawyer, they wont listen. This contract is a classic ripoff and Skales & Osagie probably just wanted to take what in their opinion is theirs. Which is why you need a lawyer before signing any form of contract whatsoever. People who are exposed and trained to find every loophole in a bad deal. This is just sad.

    P.s. I think Osagie just had her wedding few weeks back yh? This is a bad wedding gift

  22. Middle Girl

    June 1, 2016 at 8:12 am

    No wonder, musicians are starting music labels. Let’s fear God. 70/30 sharing formula is not fair. Haba!

  23. Tpompay

    June 1, 2016 at 4:14 pm

    Osagie had infringed contract and it’s punishable legally….. ‘if you don’t like mud,don’t pray for rain’….. no matter what the contract might contain,Skales agreed and signed to it, so so must be abided by it…… if it is US Osagie an Skales for hear weeehhhen!

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