DON'T BELIEVE THE HYPE. A HIP-HOP MOGUL SAYS IT'S PROPAGANDA.
By Jeff Leeds, NEW YORK TIMES

Russell Simmons has long reigned as one of the entertainment industry's most capable promoters. At 47, as the co-founder of the Def Jam Recordings label, Mr. Simmons still tirelessly hawks a portfolio of ventures, from financial services to an energy soda.

"You give out false statements to mislead the public so they will then increase in their mind the value of your company."

Russell Simmons and his wife, Kimora Lee, both work in fashion.

His best-known recent success has been Phat Farm, the hip-hop-flavored clothing line he founded in 1992. Early last year, the Kellwood Company, an apparel maker based in Chesterfield, Mo., purchased the firm for $140 million, retaining Mr. Simmons as chief executive of the division.

But in a civil deposition last July, he provided some unusual insights into fashion marketing. Under questioning from a plaintiff's lawyer as part of a lawsuit involving a longtime business partner, Mr. Simmons told of what he described as "the amount of hype that goes on when I discuss the value of Phat Farm," according to the transcript.

"It is how you develop an image for companies. So in other words, you give out false statements to mislead the public so they will then increase in their mind the value of your company," Mr. Simmons said.

The strategy seemed to work. In February 2003, for instance, Mr. Simmons appeared on CNBC saying that Phat Fashions was "doing $350 million" in sales. In fact, Phat Fashions' revenue for 2002 totaled $14.3 million, according to court papers and the company.

FOR THE REST OF THIS STORY VISIT:
http://www.nytimes.com/2005/05/16/business/media/16simmons.html?ex=1118030400&en=583183b54dc2945a&ei=5070&ex=1117080000&en=5e9842b470bc70c9&ei=5070&oref=login