Damon Dash is grappling with the possibility of more assets being auctioned off to satisfy mounting debts.
A recent court-ordered sale of his one-third ownership stake in Roc-A-Fella Records fetched $1 million at a federal auction in Manhattan, but the proceeds fell short of addressing his sprawling financial obligations.
Dame’s foray into the legal quagmire traces back to a defamation and copyright infringement lawsuit brought by plaintiffs Josh Webber and Muddy Water Pictures.
The filmmaker and production company secured judgments totaling $823,284.71 after alleging unpaid debts tied to Damon’s attempt to hijack the film “Dear Frank.”
His stake in Roc-A-Fella was put on the auction block to satisfy this judgment, $193,000 in back child support, a lawsuit filed by photographer Monique Bunn, another by a writer named Edwyna Brooks and a massive $8 million tax debt to the state of New York.
Although the minimum bid for the Roc-A-Fella sale was $1.2 million, New York State acquired Dash’s shares for $1 million using a creditor bid.
From that sum, New York City received $193,877.57 in back child support, while New York State allocated $1,702,626.34 toward Damon Dash’s outstanding taxes.
This left Webber and Muddy Water Pictures—initially owed the $823,284.71 judgment with interest—without settlement, alongside other creditors still awaiting payments.
According to court documents obtained by AllHipHop, Damon Dash could soon see other valuable personal property, including his Poppington business and copyrights tied to films he produced, put on the auction block.
Webber and lawyer Christopher Brown are seeking ownership documents from Damon Dash and an order forcing him to deliver them to the United States Marshal.
If Poppington cannot be sold, Brown is asking a judge for permission to sell movies like “We Went to… China,” “Welcome to Blackroc” and “Honor Up,” which was executive produced by Kanye West.
These assets are integral to Poppington LLC, Dash’s media company and air on his television network, America Nu.
Should additional works go to auction, creditors may face the same challenges of competing for limited proceeds with higher-priority claims, such as the rest of the unpaid state taxes.
