The Harder They Fall; investigative feature on ... - Ethan Brown

n October 27,2002, a private jet carrying Jay-Z and Beyoncdsat motionless sn the runway at Teterboro Airport in NewJersey waiting for Gabriele Smith, afinancial adviser whoseboyfriend, Michael Kyser, then vice president of promotionat Def Jam, was among those onboard. She was running hoursbehind, and the holdup was threateningto make Jay late fora major appearance at TD BankNorth Garden. Smith wasn'treally expectingthem to stick around for her, especially since she and Kyserhad argued heatedly that day about her chronic lateness. "So when I pulledup and saw the jet was still there, I knew something was strange," she says.// lnfact, she was abouto have the most incredible evening of her life. Justas Jay'show got under way in Boston, Smith, 36, recalls, Kyser pulled her asidebackstage. 'tl need to talk to you," he said, smiling, and then he dropped toone knee. As he popped the question, 5'mith broke into tears. <strong>The</strong>y'd been datingsince the mid-'90s, and she had long prayed for this moment.Smith croaked out a "Yes." Just then, Jay Jam president Kevin Liles, claiming she hadlooked over to Kyser from center stage and bilked them out of millions of dollarssilendymouthed, "k itdone?" Kysernodded. through her financial services company, PremierBusiness Management."My friend Mike justproposed tohis girlfriend,Gaby!"Jay announced to the Boston Smith is now facingotherlawsuits as well.partrer Richard Ford (aka Skane), andJasmineYoung:Trinidad, a former DefJam exec andmanager ofDMX's Bloodline label. Young-Trinidad alleges that Smith stole $r5o,ooofrom her and even created a fictitious moneymarket account called A*T Financial tocover her tracks. "Gabriele got comfortablewith her lifestyle," Young{rinidad says angrily,"and then stole everyone's money."Smith maintains that she is not guiltyofthese accusations, and, further, that shewas merely a "face person" for Premier, notinvolved in the company's day-to-day operations."It looks like I had a lot more to dowith the company than I actually did," shesays. "It's unfortunate, and it's somethingI really want to apologize to the victimsfor." Smith's longtime friend Mark Pitts,who comanaged the Notorious B.I.G. andis now a senior vice president with the ZombaLabel Group, compares her predicamentto parents who are held legally responsiblefor the actions oftheir children. "Gabrieleput way too much in someone else'shands," he says, adding, "it's not in her"lt looks like I had a lot more to do with the company than I actually did. lt'sunfortunate, and it's something I really wanto apologize to the victims for."crowd. "Everybody say congratulations!Mike, come on out here." Kyser venturedover, nervously picked up the mic, and startedimprovising a songthat began, "I love you,I love you..." as Smith remained in thewings, in total shock. "Beyonc6's pushingme, 'Go out there, go out there,"' Smithremembers. As she inched herway onstage,Jaylaunchedinto "'o3 Bonnie & Clyde."Andthen, to top it off, asJay rapped the chorus-All I nudin this lfe ofsinis mt andry girniendmulticoloredballoons floated down into thearena. "It was one of the best nights of mylife," Smith says.Itwas also the final peakofgood fortunein a life that was about to plunge into a spectacularfreefall.Justmonths later, in mid zoo3, Smithwashitwith the firstofthree lawsuits filed in NewYorkbvorominent clients such as formerDef'rW'e allege that Gabriele convinced my clientsshe could manage business affairs, but thenengaged in fraud and outright theft," saysattomeyJohn T. McGuire, who, at press time,is representingDJ Clue, Desert Storm Recordscharacter to steal."Priorto the lawsuits, inJanuary zoo3,federalagents raided Smith's firm's 38th Streetoffices in Manhattan as part ofawider searchfor evidence connecting DefJam's <strong>The</strong> Inc.iiai:t::liCAN YOU SAY trCHEESE'?5mith flashes d smile at aVMA after:party in August2002 with then Def Jam prezKevin Liles.156 UIBO