LOS ANGELES (CN) — A former radio host known as Chiquibaby sued the Spanish Broadcasting System (SBS) on Monday, claiming it fired her and her husband for objecting to its illegal payola scheme: demanding $5,000 from musicians to play one song one time.
Stephanie Himondis pka Chiquibaby says her husband, co-plaintiff Gerardo Lopez, earned more than $120,000 base pay for managing two SBS, and she got more than twice that, through base pay and bonuses.
Defendant SBS is "the largest Hispanic-controlled radio broadcasting company in the United States," owning and/or operating at least 20 FM stations, in L.A., New York, Miami, Chicago and elsewhere, according to the Oct. 17 complaint in Superior Court.
The couple claim that SBS "demanded that Mr. Lopez engage in an illegal payola scheme" as part of his job. "SBS demanded five thousand dollars ($5,000) in payment from musicians in exchange for one play of one song on the air per station," the complaint states.
"SBS flat-out refused to play music on its stations if musicians refused to pay SBS's illegal 'fee' for the same. SBS in turn gave Mr. Lopez a monthly sales quota of five (5) music spots, i.e., SBS required Mr. Lopez to illegally sell and collect from musicians at least five such 'fees' each month, per station, per month, which would yield at least $50,000 per month of $600,000 per year in illegal revenue to SBS."
Payola is illegal, under Federal Communications Commission regulations.
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http://www.courthousenews.com/2016/1...dio-payola.htm
