Homepage / Nashville News
E-Mail News Alerts
Get breaking news and daily headlines.
Browse all e-mail newsletters
Related To Story

Music Label CEO Accused Of Fraud

Lawsuit Seeks $900,000 From WhiteStar Entertainment CEO

POSTED: 11:36 am CDT April 21, 2009
UPDATED: 10:32 pm CDT April 21, 2009

George Ducas was on his way after writing big hits for Sara Evans and Garth Brooks. He was on the stage, playing with Keith Anderson, opening for Dierks Bentley, and was ready for his new label to ship out his new single.

Related: Watch This Story

But like a true country song, heartache would soon set in, starting with his song that was never sent to radio stations.

"Payments started getting a little slower, and people started slowly wondering, and doubt started creeping in," Ducas said.

Ducas had doubts about JC Lestorti, larger-than-life CEO of WhiteStar Entertainment. Lestorti lured veterans of Music Row, was featured in an industry magazine, signed major talent to his new label and then, according to a federal lawsuit, his employees never saw him again.

"We were negotiating with about four or five other major artists," said WhiteStar Managing Director Walt Wilson. "Then, the next day, it's gone."

Employees said Lestorti boarded a plane for Tampa Dec. 2 and never returned. Paychecks stopped. Calls weren't returned.

According to the federal lawsuit, some employees gave Lestorti tens of thousands of dollars to get the startup going and then couldn't reach the person who promised to reimburse the loans.

Wilson said he gave Lestorti more than $20,000. Artist Manager Dave Clemmer said Lestorti got $75,000 from him, and Mike Klein of the promotions department said he gave the CEO almost $16,000.

With a stalled label, angry musicians and employees on Music Row demanding payment and a lawsuit from a major talent, no one could find Lestorti except for the Channel 4 I-Team.

"I think Music Row scammed me," Lestorti said in a phone interview.

An Elvis impersonator and successful businessman, Lestorti came to Nashville with a dream of forming his own label. He left with a mob of angry former workers and artists. The I-Team spoke to 12 of them.

What was once a dream label is now the subject of two lawsuits.

The federal lawsuit from WhiteStar employees and other artists accuses Lestorti of fraud and seeks $900,000 from him.

"It was just a situation where it just, it ripped your guts out, because all you wanted him to do was to come back and make it right," said Nikki Breazeale, marketing director and plaintiff.

According to the suit, it all started coming apart last December.

The marketing staff was promoting other artists, like "Nashville Star" finalist Jason Meadows. Then, checks stopped coming or started bouncing.

"Me and apparently dozens of other people were left holding the bag," said studio musician Mike Brignardello.

Some of Lestorti's former employees wonder if the label, the whole Nashville experience, was nothing more than fun and games for the wealthy Lestorti.

"It's an interesting case of ego and delusional mentality," said artist manager and plaintiff Dave Clemmer.

"I think that he's a crook," Wilson said of Lestorti. "I think that he's a fraud."

"I'd say that they need to see a psychiatrist," said Lestorti in response to his former employees' perceptions of him.

The Channel 4 I-Team tracked Lestorti to New York at one of his several homes after hearing from 12 different people who accuse Lestorti of abandoning him.

"We didn't abandon anybody," said Lestorti.

He said his label hasn't folded; it's being reorganized in Miami. He said he's had serious stomach surgery that he's now recovering from.

His staff is at fault for the problems in Nashville, he said.

"It's mismanagement and misappropriation of funds, is what happened there," said Lestorti, who denies having financial trouble and running away from his obligations.

But if, as Lestorti suggests, these employees were nothing more than people who squandered the company's money, their reputations suggest otherwise. The managers all have successful track records at other labels.

Along with the federal suit, country star Danielle Peck, whom he signed as a songwriter, is now suing.

For Ducas, it's all ripe material for his day job as a songwriter.

"I think that there are some victims here, and, probably, in a sense, I am one of them, but I don't intend to be for long," said Ducas.

Lestorti said he has tried to contact former staff, but they won't talk to him.

All 12 employees insist they have yet to hear from him.

Links We Like
Sponsored Content
Boost your home value and make buyers bite with these bathroom updates. More

Employers generally have options when it comes to hiring. Makes sure you present yourself as professionally as possible, or else. More

The signs of Cancer can sometimes be very subtle. Here's a guide to help you recognize them early. More

Snacking can be a healthy part of your diet, as long as you choose the right snacks. Get tips for eating between meals. More

Sponsored Links