BlueBeat founder Hank Risan. Photo Credit: Hank Risan
Another streaming-related fraud case is underway – this time involving an individual who allegedly pocketed millions by making misrepresentations about “his purported music streaming service,” BlueBeat.
The U.S. Attorney’s Office for the Northern District of California formally disclosed the indictment in a release, identifying Santa Cruz-based Hank Risan as the defendant. Now facing four counts of wire fraud, 70-year-old Risan founded a software company called Media Rights Technologies (MRT) decades ago, one of the entity’s press releases shows.
MRT, for its part, might be familiar to some in the industry. The self-described specialist “in digital rights management and secure content delivery solutions” reportedly paid a $950,000 settlement to EMI in 2011 after allegedly infringing on several Beatles tracks.
(Without diving too far into the multifaceted sub-topic, the alleged infringement also involved different artists’ works and reportedly centered on soundalike tracks made available to purchase for 25 cents a pop.)
And that alleged infringement reportedly occurred on the aforementioned BlueBeat. The latter wasn’t live at the time of writing and, judging by the conspicuous lack of Wayback Machine grabs from 2023’s final five months and all of 2024, could have gone offline a while ago.
But the available captures indicate that BlueBeat offered “millions of songs” to stream via a $5-per-month Basic tier and a $7-per-month Premium tier. Additionally, many commercially prominent acts, from The Weeknd to Taylor Swift, were featured on the platform’s “artists” page, per the Wayback Machine.
Returning to the indictment, Risan allegedly made “false claims” to investors concerning “BlueBeat’s copyright ownership of approximately 2.5 million songs” recorded by well-known talent.
The alleged misrepresentations didn’t stop there. Risan allegedly deceived investors with fake BlueBeat valuation details, unsubstantiated claims of an imminent sale, and even false indications of ties to companies associated with a former Commerce Department undersecretary, according to the release.
While it probably doesn’t need saying in light of the indictment, the allegedly untrue claims are said to have powered a multimillion-dollar scheme. As laid out by the authorities, Risan allegedly induced backers into buying nearly $2 million worth of stock and stock conversions, besides making “payments characterized as ‘loans.'”
All told, the defendant allegedly nabbed the initially mentioned $3.17 million and used the “fraudulently obtained funds” to pay personal credit cards, make mortgage payments on his home, and buy collectables.
With his next court appearance scheduled for October 8th, Risan was released from custody on a $100,000 unsecured bond. It will, of course, be worth tracking the case as it unfolds.
More immediately, like the federal case against accused streaming fraudster Michael Smith, there are more than a few moving parts in play here. (Though voluminous discovery materials mean that the legal process is plodding along, DMN Pro has already explored many interesting angles of Smith’s alleged multimillion-dollar scheme and wider career.)
Just scratching the surface, Risan’s Media Rights Technologies has apparently spearheaded IP litigation against Microsoft. One of the multiple courtroom confrontations in question – pertaining to “billions of copyright violations as well as trade secret theft” – only initiated in December 2024, per an MRT release.
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