John Loan, the corporate party planner known in the New York cabaret community as John Jerome, who runs the independent record label, Jerome Records, pleaded not guilty to grand larceny charges Feb. 6 in Manhattan, The New York Post reported.

Loan was charged with grand larceny in the first degree for allegedly billing Alliance Capital Management $3.4 million since 1998 for services that he apparently never provided as their banquet manager. An internal audit at the Manhattan investment firm raised red flags that led to Loan's arrest Jan. 14.

The Post reported that prosecutors said the money supported an extravagant lifestyle and funded Jerome Records.

Jerome Records' list of attached artists has included Jeff Harnar, Heather MacRae, Steven Brinberg, Karen Mason, Phillip Officer, Julie Wilson, Jessica Molaskey, Stephanie Pope, Laurie Krauz, Mary Testa, Anna Bergman and more.

Jerome Records' mission, according to the website, which is no longer functional, was "preserving the work of promising young artists as well as theatre and cabaret veterans. Words and music mean nothing without passion. Jerome Records Inc. is dedicated to artists, and audiences, who honor that truth." The Post reported Loan turned down a plea deal by prosecutors offering him a four-to-12-year sentence. If convicted, he now faces a maximum sentence of 25 years.

Loan apparently has also signed a confession of the alleged wrongdoing. His lawyers are contesting his statement, saying he was intimidated by cops and did not have access to a lawyer.

His statement apparent said that he began a company called Beautiful Parties and billed Alliance "to get extra money" to pay for his dying partner's AIDS treatment. After his partner's death, the billing continued and Loan started an acting school and gave to charities, The Post reported.

— By Kenneth Jones