Houston Rapper Sauce Walka's record label The Sauce Factory has been labeled as a criminal gang tied to underage sex trafficking in both State and Federal paperwork.

In an interview with NBC 2 News in Houston, Walka denied having anything to do with a criminal enterprise.

“I'm a CEO of a record label; we drop albums, I got seven artists," Sauce said. "We're a prestigious record label of young men that give out inspiration and leadership to a lot of young people in Houston and all over Texas.”

Last Thanksgiving, one of Walka's close associates -- rapper Sauce Lean -- was arrested for pimping out an underage girl and threatening her with a gun. Surveillance video revealed Lean and the underage girl at Walka's Houston home and there are YouTube videos of Walka and Lean rapping together.

Walka wasn't charged in this or any other case against Sauce Factory members.

“Honestly, I don't know why. I don't know if it’s a misunderstanding from the videos or something, just a misunderstanding from the past, whatever they perceive that is," Walka said when asked why The Sauce Factory keeps coming up in criminal paperwork.

“Every celebrity has lies, and made-up stories and folk tales made up about them. They say if you can't stand the heat, then get out the kitchen. If you're not ready for people to lie on you and make up things because you are a celebrity, then that means you shouldn't be a celebrity.”

Check out the news report below.