The COVID-19 pandemic that shut down everything and drove the live music industry to its knees began nearly five years ago. To contrast this, the U.S. federal government provided artists and venues with funding to remain open under a program known as the Shuttered Venue Operators Grant (SVOG) in response to forced closures and stay-at-home orders. At the federal level, it seems like a sensible move, but a recent Business Insider study discovered multiple cases where extremely rich people may have abused and exploited that grant program. Based on thousands of documents the journal acquired and examined, the report claims that performers were able to secure the funds through “loan-out companies – corporate entities used to handle the business of touring.” Even though well-known rappers and other musicians were observed spending the money on everything from lavish birthday celebrations to high-end clothing, the article specifically mentioned Alice In Chains, a legendary grunge band, as the recipient of $4.1 million from the grant. Bassist Mike Inez, drummer Sean Kinney, and guitarist and singer Jerry Cantrell each received $3.4 million of the $4.1 million they were given. Additionally, Cantrell and Kinney received $1.4 million each, but it was unclear how much, if any, vocalist William DuVall received.
Like other grant applicants, AIC Entertainment — the three band members’ touring business — had to tell the government only that the money was ‘necessary.’ But the month before they took their grant payments, the band members recorded about $48 million in income from selling the copyrights on their catalog. They made hundreds of thousands of dollars more from merchandise sales and other profit distributions in 2022. The band spent some money to pay its staff. It paid hundreds of thousands of dollars to sound-equipment-rental firms, videographers, and managers. But the precarious nature of working in the live-entertainment business didn’t change for some of its employees. Scott Dachroeden, a guitar tech and tour photographer who had worked with the band for years, received a cancer diagnosis in late 2022. The band, which records show did not spend grant money on benefits like health insurance, circulated a GoFundMe page on Twitter. He has no health insurance and now cannot work to pay his bills,” the page said. The band’s lead singer said on Facebook that Alice in Chains helped out behind the scenes, but a person familiar with the situation said that Dachroeden didn’t get much, if any, money from the band during the pandemic and that after his diagnosis, the band connected Dachroeden with a charity that helps with medical bills. Dachroeden died soon after his diagnosis. Alice in Chains‘ publicists and manager didn’t respond to requests for comment.’
Who knows what this subject will bring in the future? Government funds have been mishandled and undercounted before, and this is by no means the first occasion.