I thought producers were supposed to pay for it all and then get a cut from the royalties and what not....either way, that sounds like an awful lot of money, I'd check them out on the BBB, ironically though his name sounds familiar for some reason, maybe do a search on his name too? Best of luck to you, just be careful and do your research ALWAYS before signing anything, and consult an entertainment or copyright lawyer if you can.
~Sammi
www.LyricsandPoemsbySammi.com