Fat Joe Hit With $20M Civil RICO Lawsuit Alleging Money Laundering, Recording Sex Acts, PPP Scam & More
Terrance Dixon, the longtime right-hand man to Fat Joe, has officially filed a $20 million civil RICO lawsuit against the Bronx rapper in federal court, alleging years of exploitation, fraud and abuse under what he calls “The Cartagena Enterprise.”
The complaint, filed Thursday (June 19), accuses Fat Joe of orchestrating a criminal operation involving forced labor, sexual coercion, financial fraud and witness intimidation.
“[Fat Joe] employed persistent verbal abuse, threats of physical violence, erratic and insufficient payment, manipulative control over travel and accommodations, and continuous humiliation. Collectively, these coercive tactics resulted in chronic emotional and psychological distress, profound anxiety, and severe trauma that continue to affect [Dixon] to this day,” Tyrone Dixon said.
Dixon claims he worked for over 16 years as a hype man, ghostwriter, background vocalist and security detail yet was denied credit, royalties, and compensation for his creative contributions.
According to the lawsuit, Dixon alleges he helped write and perform on several songs, including “Congratulations,” “Ice Cream” and “Money Over B######,” but was systematically erased from royalty records and publishing rights.
He says Fat Joe and his team submitted “falsified contracts and backdated split sheets” to BMI and ASCAP to divert royalties and conceal Dixon’s authorship.
The complaint names several of Fat Joe’s close associates as co-defendants, including Pete “Pistol Pete” Torres, Richard “Rich Player” Jospitre and Erica Juliana Moreira.
It also targets corporate entities, such as Sneaker Addict Touring LLC, Slate Inc., and Roc Nation, which Dixon says played a role in concealing his work and facilitating the alleged misconduct.
Dixon accuses the group of violating the Trafficking Victims Protection Act and the Racketeer Influenced and Corrupt Organizations (RICO) Act.
##>
He also alleges unjust enrichment, fraud, money laundering and intentional infliction of emotional distress under New York and Florida law. Among the most disturbing claims are allegations of sexual coercion.
Dixon says he was forced into sex acts under threat of abandonment in foreign countries, often while being monitored or recorded.
He also alleges Fat Joe orchestrated group sex scenarios involving dancers and minors, using psychological manipulation and economic control to maintain dominance.
“[Dixon] was routinely coerced into engaging in sexual acts with women specifically brought by Defendant Cartagena to hotel rooms and private gatherings following performances and studio events. Defendant Cartagena frequently arranged and orchestrated these encounters, intentionally creating scenarios designed to reinforce Plaintiff’s complete submission. Defendant Cartagena regularly monitored these encounters closely—frequently remaining in the room to watch, record, or provide explicit direction and commands,” the lawsuit reads.
The lawsuit also claims Fat Joe and his associates inflated Dixon’s reported income to the IRS to mask wage theft and increase his tax liability. Dixon says he was deprived of at least $600,000 in royalties and excluded from future earnings tied to his creative work.
Dixon further alleges that burner social media accounts were used to issue threats and intimidate witnesses. He says Fat Joe and Roc Nation retaliated by filing a “baseless” lawsuit against him and his attorney, Tyrone Blackburn, to silence him.
Fat Joe’s legal team previously filed a defamation suit in April 2025, accusing Dixon and Blackburn of attempting to extort money by making false allegations, including claims of statutory rape and sex trafficking.
Fat Joe has denied all wrongdoing, calling the accusations “completely false” and part of a coordinated smear campaign.
Blackburn also represents Rodney “Lil Rod” Jones in a separate civil RICO case against Sean “Diddy” Combs, which helped lead to a federal investigation.
Related
