The U.S. Department of Justice and the Securities and Exchange Commission allege that Charles Cole carried out a fraud scheme tied to Napster. Prosecutors and regulators say Cole falsely represented that he had billions of dollars available to invest, seeking to obtain a large ownership stake in Napster’s parent company. According to the allegations, Cole’s plan involved fabricating financial proof, including fake bank records, and using a fraudulent website to make his investment appear legitimate. Quartz reports that prosecutors describe Cole as defrauding Napster using fake documents and a website to support his claim of access to approximately 239 million shares. Billboard similarly describes Cole as accused of conning Napster out of a nearly 25% ownership stake and references the alleged $3 billion investor. The government’s filings contend the fabricated materials were designed to convince Napster’s parent company that Cole could complete a major purchase. The charges are part of a fraud case pursued by federal authorities, with the SEC also participating through civil enforcement actions. Cole’s alleged conduct is under legal review, and the allegations describe conduct claimed by prosecutors and regulators.