Audiophiles File Suit: Mobile Fidelity Sound Lab Faces Fraud Allegations

Rihonna Scoggins 

ACFE Community Manager 

Mobile Fidelity Sound Lab (MoFi) is best known by audiophiles and hipsters alike as a record label specializing in the production of reissued vinyl LP records, compact discs and Super Audio CDs that, even in our digital era, remain a popular and sought-after commodity. As anti-fraud professionals know, however, what you see is not always what you get. The same goes for what you hear.  

On July 14, 2022, Mike Esposito, owner of The ‘In’ Groove record store in Phoenix, Ariz., posted a YouTube video that sent the audiophile world spinning. Citing an unknown but “reliable” source, Mike stated that MoFi has been using digital files in its production of so-called original master tape albums despite marketing the reissues as authentic. The fallout of the MoFi revelation threw the audiophile community into something of an existential crisis. The quality of digitized music has long been criticized because of how much data was originally stripped out of files so MP3s could fit on mobile devices. These days, with the right equipment, digital recordings can be so good that they can fool even the best of ears. 

Master tapes vs Digital files 

In our world of easy-to-stream music, it may be easy to dismiss the differences between reissues using master tapes and digital files. Master tapes are just that — these are the physical tapes used during the recording process. For bands of the past or artists who are no longer with us, these original recordings become much rarer and more valuable over time. 

Earlier this year, MoFi announced a reissue of Michael Jackson’s hit “Thriller,” producing more than 40,000 copies using the original master tapes for the repressing. With so many copies being made and the process requiring the master tapes to be run dozens of times — certainly risking damage to the original tapes — audiophiles were left questioning MoFi’s validity. Why risk damage to tapes that can never be replaced? 

This was neither MoFi’s first, nor last, slip up. 

The lawsuit against Mobile Fidelity 

The complaint was brought forward by Adam Stiles, a Charlotte, N.C. resident, who was a frequent customer of MoFi albums for years.  The suit claims that more than 100 titles are involved in the fraud, including some of Mobile Fidelity’s most well-regarded reissues, such as Berlioz’s “Symphonie Fantastique” and The Beatles’ “Revolver.” The lawsuit specifically cites a purchase of The Pretender’s self-titled album that included an “original master recording” designation. 

The lawsuit alleges MoFi has been actively misleading customers about its vinyl offerings since at least 2013. On behalf of himself and the proposed class of “all persons in the United States who purchased a Record before July 15, 2022”, Stiles is seeking restitution and damages. The lawsuit also alleges fraud, unjust enrichment, deceptive trade practices, breach of warranty (express and implied) and more.  

After Esposito's video gained traction, MoFi engineers acknowledged the use of digital technology in the process, and Mofi quickly began correcting language on its website and advertising. The suit claims these corrections “demonstrated the breadth of MoFi’s representations and omissions and the material information MoFi misrepresented or failed to disclose.” 

MoFi’s attorney, Joseph J. Madonia, said in response: “We cannot comment on pending litigation matters at this time.”