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Industry rule #4080 is still in effect in 2014 Ex-Warner Bros. Exec Arrested For Embezzling $1.3 Million Via NYPost A former Warner Music executive — a top Hollywood fund-raiser for President Obama — embezzled more than $1 million from the record label, Manhattan prosecutors charged Tuesday. Danielle D. Smith, 45, flew from California and turned herself in at the Manhattan District Attorney’s Office. She was arraigned on charges of first-degree grand larceny. Smith, who worked in the Los Angeles in the “urban” unit of Warner Music’s Atlantic Records division, allegedly used a corporate credit card to rack up $1.3 million in personal charges, prosecutors said. Smith’s duties at Warner Music, headquartered in Manhattan, included scouting and signing artists, as well as arranging their travel and lodging, sources said. But Smith also used her Warner Music credit card to fund a luxury lifestyle, sources said. She booked rooms in posh hotels and airfare for personal vacations and trips herself, and shelled out for “luxury goods” — resulting in whopping charges being billed to the company credit card between 2007 and 2011, according to law-enforcement sources. Smith resigned from Atlantic in late 2011, while she was under internal investigation for the credit card charges, sources said. Guess times have been tough for Danielle since she’s stopped stealing money from her former employer… Smith looked haggard in court, wearing black-rimmed glasses, a purple sweater and a gray wool coat. She pleaded not guilty before Justice Gregory Carro, who set bail at $1  million. Her lawyer, Scott Leemon, has represented rappers 50 Cent and Jim Jones. Smith’s mother flew with her from California and agreed to put up a retirement fund to spring her daughter on bail, working with bail bondsman to the stars Ira Judelson. “She denies the allegations and we look forward to exonerating her,” said Leemon. Smith is due back in court Wednesday morning. We have no idea how this lady can possibly be exonerated, sounds like she’s headed to join the cast of Orange Is The New Black… Image via Gabriella Bass

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Shady Swipin’: Former Warner Brothers Music Exec Popped For Embezzling $1.3 Million From Record Label!