Music business manager Sean Welch reported to Federal Correctional Institution (FCI) Fort Dix on Tuesday to begin an eight-month prison sentence. His judgment also requires restitution and a separate fine totaling $665,629.52.
Guilty plea and financial penalties
Welch, founder of Industry Management Group, pleaded guilty in December 2025 after an initial indictment in early 2024. He was accused of defrauding Juice WRLD and others.
The accusation described Welch as “purporting to manage their finances and instead embezzling the money for himself.”
The extent of the operation and the amount Welch should repay had been disputed. Seeking a lower amount, his lawyers argued that he had performed “valuable work for many clients” and was entitled to compensation for legitimate services.
The judgment sets a separate fine equal to the restitution amount. Welch is represented by Federal Defenders of New York.
Payment and release conditions
The judgment specifies the following payment terms and conditions for Welch’s three years of supervised release, which will follow his prison sentence:
- An upfront lump-sum payment of $100.
- Restitution “payable at 15 percent of gross monthly income.”
- A requirement to provide his “probation officer with access to any requested financial information”.
- Permission to obtain new credit lines “unless he is in compliance with the installment payment schedule”.
Diddy is also serving a sentence at FCI Fort Dix.
Other music-industry criminal cases
Also on Tuesday, Michael Smith received an 18-month prison sentence after pleading guilty to conspiracy to commit wire fraud in a streaming fraud case. The charting artist must also forfeit more than $8 million.
In a separate case, Hank Risan was charged last year with four counts of wire fraud. He is accused of taking investor funds through alleged misrepresentations about “his purported music streaming service,” BlueBeat.
There have been no major developments in Risan’s case so far in 2026. A bail review hearing is scheduled for next week.
Pooh Shiesty and other defendants, including his father, are accused of kidnapping and robbing Gucci Mane and two other people in an alleged attempt to leave a record contract. Trial is tentatively scheduled for February 2027.
