(AllHipHop News) Today (May 21), marked the fifth day of testimony in the federal cocaine distribution trial of mogul James “Jimmy Henchman” Rosemond, who is accused of masterminding a massive cocaine distribution organization from 1995 until 2010.
The operation allegedly imported hundreds of kilos of the drug from the West Coast using overnight courier services and then sold them into the New York area.
The government claims the proceeds were sent to the West Coast, and then laundered through various companies controlled by Rosemond.
Today, Czar Entertainment’s former business manager, John Dash, took the stand to testify for the prosecution.
Dash is also currently the business manager for rapper Game and has handled the rapper’s finances since about 2005.
Dash testified that he regularly deposited money orders into Czar’s accounts and paid for expenses that he claimed he was told “was income derived from studio rental time.”
According to Dash, Rosemond earned most of his money through management commission checks issued to Czar Entertainment.
Dash said that in 2006-2007, Czar handled the careers of Mario Winans, Guerilla Black, and Game.
Dash said promoters often paid Game through wires, while smaller promoters often paid the rapper in cash.
Prosecutors for the government focused on Game’s tour revenue in the United States and overseas in 2007.
According to Dash, around this time about 80 percent of Game’s income was made from touring derived from overseas, which Czar would also get a piece of.
Dash said that around 2007, checks for as much as $100,000 would mysteriously arrive at the Czar offices, with no invoices or sender attached to them.
Dash revealed that Rosemond was also in business with a company named Flava Foods, which was a money losing venture that owned a chain of Fat Burger restaurants.
He said that Rosemond would make capital investments in the company, and also received one royalty check from a $200,000 investment in the movie, Cookout 2.
Dash claimed that although Rosemond’s income decreased starting in 2007, he was still making payments for a variety of expenses for his clients, including Game, Mike Tyson, and others.
Things came crashing down for Dash in 2010, when two IRS agents showed up to his house and began questioning him about his bank account records and his book keeping for companies owned by Rosemond.
But Dash’s reputation and credibility were severely damaged by James Rosemond’s attorney, Gerald Shargel.
Dash admitted that he was “relieved” that agents did not seize his own books during the initial raid, because he had already committed numerous bank fraud crimes, which had nothing to do with Rosemond or Czar Entertainment.
“I created fake W-2s, fake pay stubs, and mortgage loan applications for myself and some clients,” John Dash admitted on the stand.
He also admitted to several other crimes, including writing off over $1 million in business expenses, without Rosemond’s knowledge.
But, the most shocking information came when Dash admitted that he had no legal certification, educational background, or any other formal training to represent himself as an accountant for a variety of entertainers.
Shargel also made Dash admit that it was his idea to deposit cash payments in increments of less than $10,000, which is a crime called “structuring.”
Like other witnesses the prosecution has presented, Dash has a cooperation agreement with authorities to cover crimes he committed from 2004 until present.
Testimony continues today.