Rapper Gerald "Strike" Sanders is probably best known for his appearance in 8 Mile where he battled Eminem's character B-Rabbit  but he's, unfortunately, making headlines this week after a legal battle with the state of Iowa. According to Des Moines Register, Strike has officially been banned from doing business in the state of Iowa on accusations of fraud. 

Iowa Attorney General Tom Miller speaks at a news conference. (Alex Wong/Getty Images )

Sanders is said to have run an organization in Iowa where kids from the inner-city community were hired to go door-to-door to sell merchandise, from magazines to clothes. Miller claims that Sanders would make his employees falsely tell customers that the money generated from these sales would go towards a local charity. Sanders denied the allegations against him.

"What's important to know is that I did not send people into the neighborhood to defraud people," he said.

Regardless, Sanders agreed to Millers' terms in order to avoid penalization. In the settlement, Sanders' company Inner City Solutions would shut down shop in the state of Iowa. AG Miller claimed that Inner City Solutions did not register as a fundraiser, failed to obtain a sales license for door-to-door operations, and did not present customers information on their rights to cancel their purchase within three days. 

"This agreement puts a stop to Inner City Solutions’ business in Iowa and ends the company's claims it raises funds for local charities close to the hearts of many Iowans," Miller said.

In response, Sanders said he was boxed into a corner and suggested that their agreement was blackmail. "We could go after you for these crazy amounts, but if you sign this paper saying you'll never come back to Iowa we'll leave it alone," Sanders said of what officials told him.

Though Sanders does have to shut down his operation in Iowa, he will avoid any fines or penalties related to the allegations made against him and his business.